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S 61: C
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S 63: D T R T
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S 64(1): C &
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S 64(1A): C
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 SECTION 64(1A)
O :-
1. I house propert
, . S 27 .
2. T
R . 1,500 . S 10(32)
3. E
,
.
4. C .I
,

(
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.
 Capital Gains
No mall , onl e en e ecei a e a ed.

A an e ce ion o he no mal le, gain a i ing

f om an fe of ca i al a e a e bjec ed o
a nde he head ca i al gain .
 Transfer Sec 2(47)
Incl de :
• Sale, e change o elin i hmen of a ca i al a e ; o
• E ing i hmen of an igh he ein; o
• Com l o ac i i ion nde la ; o
• Con e ion / ea men of ca i al a e in o / a ock in ade; o
• Ma i / edem ion of a e o co on bond
• An an ac ion in ol ing he allo ing of he o e ion of an
immo able o e o be aken o e ained in a e fo mance of a
con ac ; o
• An an ac ion hich ha he effec of an fe ing o enabling he
enjo men of an immo able o e fla in coo e a i e ocie
Date of transfer:
The da e on hich he a e i an fe ed i im o an beca e:
a) i de e mine he e io ea in hich he gain a i e and
b) i de e mine he he gain a e ho e m o long e m
 Capital Asset Sec 2(14)
Ca i al a e mean :
• Po e of an kind held b he a e ee, he he o no
connec ed i h hi b ine o ofe ion, ( angible o in angible)
• An ec i ie held b FII hich ha in e ed in ch ec i ie in
acco dance i h SEBI Reg la ion .
Land, B ilding, ehicle , good ill, enanc igh , lea ehold igh ,
a en a e ome e am le of ca i al a e .
Note: The o e ho ld be a ca i al a e a he ime of an fe in
o de o a ac ca i al gain a .
 Capital Asset Sec 2(14)
I e cl de : (doe no incl de)- SG- PASS
• S ock-in- ade, a ma e ial o con mable o e held fo he
o e of b ine / ofe ion
• *Pe onal effec of mo able na e eg: ea ing a a el, f ni e,
ehicle , en il , e c. held fo e onal e b he a e ee o fo
membe of famil de enden on him / he .
• Ag ic l al land (R al) in India.
• Gold bond i ed b he Cen al Go e nmen
• S ecial bea e bond i ed b he Cen al Go e nmen .
• S ecified Gold Bond i ed b he Cen al Go e nmen (6.5% Gold
Bond 1977 / 7% Gold Bond 1980 / Na ional Defence Gold Bond
1980)
 Capital Asset Sec 2(14)
*Pe onal effec of mo able na e e cl de : (doe no incl de)-
DJ SAAP
Je elle D a ing Pain ing
Sc l e A chaeological collec ion An o k of a
Note: Je elle incl de
• O namen made of gold, il e , la in m o an o he ecio me al
o an allo con aining one o mo e of ch ecio me al , he he
o no con aining an ecio o emi- ecio one, and he he o
no o ked o e n in o an ea ing a a el,
• P ecio o emi- ecio one , he he o no e in an f ni e,
en il o o he a icle o o ked o e n in o an ea ing a a el.
State hether the follo ing are capital assets or not:
• F idge in ho e No a ca i al a e
• Ca fo e onal e No a ca i al a e
• Sil e en il in ki chen No a ca i al a e
• Gold coin fo dail ooja Ca i al a e
• Ho e occ ied fo e onal e Ca i al a e
 Whether the follo ing are capital assets ?
Good ill of a b ine Ye (incl de in angible )
A e onal ho e Ye (immo able)
Vacan land Ye (immo able)
Je elle Ye (e cl ded f om e onal effec )
Sha e in AB L d. Ye
Deben e in XY L d. Ye
Pe onal coo e No ( e onal effec of mo able na e)
U en il No ( e onal effec of mo able na e)
Pain ing Ye (e cl ded f om e onal effec )
Sec 10(37): E emption on compulsor acquisition of urban agricultural land
Ca i al gain a i ing o an indi id al / HUF f om he an fe of ban ag ic l al
land i e em o ided he follo ing condi ion a e a i fied:
• Land i i a ed in he ecified a ea i.e ban,
• S ch land a ed fo ag ic l al o e d ing he e iod of 2 ea
immedia el eceding he da e of an fe b ch indi id al (incl ding hi
a en ) o HUF,
• The land i com l o il ac i ed nde an la o he con ide a ion i
de e mined o a o ed b he Cen al Go e nmen o he RBI,
• Com en a ion i ecei ed on o af e 1/4/2004.
 T pes of capital assets Sec 2(29A) / 2(42A)
Ba ed on na e of a e :

Long term capital asset and Short term capital asset.

• Fo li ed ha e , ec i ie , ni of UTI, e o co on bond and

ni of E i O ien ed F nd o 12 mon h = ST
• Unli ed ha e ( i a e com anie / nli ed blic com anie )
o 24 mon h = ST
• Ca i al a e in na e of land o b ilding o bo h o 24 mon h
=ST
• All o he ca i al a e , ni of Deb O ien ed F nd , Unli ed
ec i ie o he han ha e o 36 mon h = ST

If held fo mo e han 12/24/36 mon h hen long e m ca i al a e

el e ho e m ca i al a e
 T pes of capital assets & gains

Ca i al
A e

Non
Financial
Financial
Land / Unli ed Li ed ec i ie /
B ilding / O he Uni of UTI / O he
Bo h Sha e EOF / ZCB

24 mon h 36 mon h 24 mon h 12 mon h 36 mon h

 T pes of capital gains Sec 2(29B) / 2(42B)
Long term capital gain Short term capital gain
F ll al e of con ide a ion XX F ll al e of con ide a ion XX
Le : E en e in ela ion XX Le : E en e in ela ion o XX
o an fe an fe
Ne con ide a ion XX Ne con ide a ion XX
Le : Inde ed co of XX Le : Co of ac i i ion XX
ac i i ion (ICOA) (COA)
Le : Inde ed co of XX Le : Co of im o emen XX
im o emen (ICOI) (COI)
Long e m ca i al gain XX Sho e m ca i al gain XX
No e: E endi e on an fe m be holl and e cl i el in
connec ion i h he an fe of he aid a e . E am le : b oke age,
am d , commi ion, egi a ion fee e c.
 Determining holding period of an asset
Classif the assets as Short term or long term assets:
M. A cha ed a b ilding on 1.1.2000 and ell i on LTCA
1.1.2017
M. A cha ed a b ilding on 1.1.17 and ell i on STCA
1.3.2017
M. A cha ed li ed ha e on 1.5.15 and ell i on LTCA
1.4.2017
M . A ac i e ni of UTI on 1.5.16 and ell hem on STCA
1.4.17
M.A cha ed nli ed ha e on 1.5.15 and ell i on STCA
1.4.2017
M. A cha ed a b ilding on 1.1.2015 and ell i on STCA
1.11.2016
See handout on determination of holding period
 Cost of acquisition Sec 49 & 55
Actual cost of acquisition:
Co of ac i i ion i he al e fo hich he a e a ac i ed b he
a e ee. E en e of ca i al na e a e added o he co of a e . All
e en e ill he a e i fi o e i added o he co of he a e .
Deemed cost of acquisition:
Some ime he co o he e io o ne i con ide ed a co o he
e en o ne .
E am le an fe nde a ill, gif , cce ion, di ib ion of a e on
li ida ion, e c.

Inde ation is not applicable in the follo ing cases:

a) ho e m ca i al a e
b) an fe of ha e o deben e ac i ed b a non- e iden , in fo eign
c enc , in an Indian com an

See handout on determination of cost of acquisition

 Capital gains on depreciable assets
Depreciable asset:
1) A licable o de eciable a e : The e le a l onl o
ca i al a e belonging o an block of de eciable a e ( lan ,
machine , b ilding and f ni e)
Ca i al gain a i e hen (a) o of he block onl ome a e a e
an fe ed and (b) hen all he a e a e an fe ed.
Computation:
F ll al e of con ide a ion
Le : an fe e en e
Le : o ening WDV of block
Le : co of addi ion o block
STCG

The ab e a di c ed in PGBP de eciable a e f ma .

 Depreciation
Ba ed on block of a e
4 block namel Machine , Plan , B ilding and F ni e-
Fi e.
Computation:
O ening WDV
(+) co of a e ac i ed
(-) ale al e of a e
Clo ing WDV
De ecia ion a e %
De ecia ion amo n
 Cost inflation inde
I com ed ba ed on 75% of he a e age i e in he con me
ice inde fo ban non-man al em lo ee fo he immedia el
eceding e io ea o ch e io ea , b no ifica ion in
he official ga e e.

The ba e ea of CII i 2001-02.

 Cost inflation inde
FY CII FY CII FY CII
2001-02 100 2008-09 137 2015-16 254
2002-03 105 2009-10 148 2016-17 264
2003-04 109 2010-11 167 2017-18 272
2004-05 113 2011-12 184 2018-19 280
2005-06 117 2012-13 200 2019-20 289
2006-07 122 2013-14 220
2007-08 129 2014-15 240
 Formulae

Case 1: Thi i a ion co e he ca e he e a ca i al a e i di ec l

ac i ed b he a e ee on o af e 1.4.2001
Inde ed co of ac i i ion (COA) : COA IYT
IY in hich he a e ee become he o ne
Inde ed co of im o emen (COI) : COI IYT
IY of im o emen
 Formulae
Case 2: Thi i a ion co e he ca e he e a ca i al a e i di ec l
ac i ed b he a e ee BEFORE 1.4.2001
Inde ed COA : Highe of COA o FMV a on 1.4.2001 IYT
100
Inde ed COI : Co of im o emen on o af e 1.4.2001 IYT
IY of im o emen
Note: All cost of improvement before 1.4.2001 should IGNORED
 Formulae
Case 3: A e ac i ed b bo h a e e / 49 (1) befo e 1.4.2001
Inde ed COA : Highe of e io o ne COA/FMV on 1.4.01 IYT
100
Inde ed COI : COI af e 1.4.01 IYT
IY of im o emen
 Formulae
Case 4: A e ac i ed b o iginal a e ee / 49 (1) befo e 1.4.2001
and e en o ne af e 1.4.2001
Inde ed COA: Highe of e io o ne COA/FMV on 1.4.01 IYT
100
Inde ed co of im o emen : COI af e 1.4.2001 IYT
IY of im o emen

Refe ence o he ca e of Manj la J Shah.

Whene e an a e i de i ed f om he e io o ne inca e of gif ,
ill e c. Co of he e io o ne hall be aken. Al o if he e a e
mo e e io o ne , hen co o he fi e io o ne hall be
con ide ed.
COST= Previous O ner
PERIOD OF HOLDING= Previous O ner (i.e LT/ST)
INDEXATION = Previous O ner
 Formulae
Case 5: A e ac i ed b bo h a e ee / 49 (1) AFTER 1.4.2001

Inde ed COA : Co of ac i i ion IYT

IY in hich he a e ee become he o ne
Inde ed COI: COI IYT
IY of im o emen

Illustration: X o n a o e . Co of ac i i ion i R . 1,40,000

ac i ed on 10.3.2008. Thi o e a gif ed b X o hi on Y on
A il 1, 2017. On J l 7, 2019, he o e a old b Y fo R .
3,00,000. Com e ca i al gain cha geable o a in hand of Y fo
ele an AY
Solution ? Refe ence o he ca e of Manj la J Shah.
Conversion of capital asset into stock in trade
Con e ion of an a e in o ock in ade i con ide ed a an fe /
2(47). I i an fe in he ea of con e ion. The no ional ca i al
gain on con e ion ill be cha geable in ea of ale of a e a ock
in ade.
Fo o e of com ing ca i al gain FMV on he da e of
con e ion i FVC. Pe iod of holding i f om ac i i ion o con e ion
and no o ale. Inde a ion i done he e a licable.
Af e con e ion and b e en ale, b ine income a i e in he
ea of ale.
B ine Income = Selling ice FMV a co on da e of con e ion

Illustration: M . Che anbhai ha gold bi c i i h him hich he had

cha ed on 1.5.10 fo R . 1,50,000 a an in e men . He a
je elle b ine on 1.6.17, and con e he abo e gold bi c i a
ock in ade on hi da e. The FMV of he a e 1.6.17 i R .
3,00,000. He ell he gold bi c i on 1.6.19 fo R . 10,00,000.
S a e he a abili of he e an ac ion .
Solution ?
 Date of conversion SOLD date

• -----------------------*------------------------------*

• Capital Gain Business Income

• * Before conversion falls under CG.
• Post Conversion shall be treated under PGBP.
Treatment of advance mone received - Sec 51

Ad ance
amo n
fo fei ed

Befo e On o af e
01/04/2014 01/04/2014

Shall be cha geable o

Red ced f om COA /
a nde he head
FMV / WDV a he
Income f om o he
ca e ma be
So ce
 E emptions
• Sec ion 54
• Sec ion 54B
• Sec ion 54D
• Sec ion 54EC
• Sec ion 54F
• Sec ion 54G

See hando
 Illustration
R bmi o he follo ing info ma ion:
Particulars Date of Cost Market Date of Sale value
acquisition (Rs.) value on transfer (Rs.)
1/4/2001
(Rs.)
U ban 05/06/1990 90,000 1,80,000 16/08/2019 28,00,000
ag ic l al
land (AL)
R al AL 05/05/1995 1,80,000 1,26,000 17/10/2019 21,60,000
Sha e 06/08/2018 1,08,000 36,000 05/07/2019 1,44,000
Gold 07/09/2006 90,000 81,000 06/03/2020 12,00,000
Re iden ial 09/07/1986 54,000 10,80,000 01/03/2020 35,00,000
HP
R cha ed ano he ag ic l al land d ing he ea fo R .
15,00,000 and al o in e ed in a ne ho e o e R . 10,00,000.
Com e a able ca i al gain fo ele an a e men ea .
 Solution
Particulars Urban Rural Shares Gold House
land land propert
FVC 28,00,000 No a 1,44,000 12,00,000 35,00,000
(-) an fe e . Nil Ca i al Nil Nil Nil
(-) ICOA / COA 5,20,200 a e 1,08,000 2,13,197 31,21,200
180000*289 90000*289 1080000*289
100 122 100
(-) ICOI / COI Nil Nil Nil Nil
LTCG / (LTCL) 22,79,800 9,86,803 3,78,800
STCG 36,000
(-) E em
/ 54B 15,00,000 1000000*986803
1200000
/ 54F - 8,22,336
Ta able LTCG 7,79,800 NA - 1,64,467 3,78,800
Ta able LTCG 13,23,067 Ta able STCG 36,000
 Illustration
S cha ed a lo fo R . 300,000 in 1989-90 and i a old on
10.12.2019 fo R . 30,00,000. He aid R . 40,000 a b oke age
cha ge . He in e ed R . 4,00,000 in bond of NHAI (no ified /
54EC) on 28.5.2020 & R . 15,00,000 in he cha e of one
e iden ial ho e on 15.6.2019. Com e C.G. a ming he doe no
o n an e iden ial ho e on he da e of an fe of lo .
Solution
FVC 30,00,000
(-) e en e in ela ion o an fe 40,000
Ne Con ide a ion 29,60,000
(-) ICOA 300000*289/100 8,67,000
LTCG 20,93,000
(-) e em ion / 54EC 4,00,000
(-) e em ion / 54F 10,60,642 14,60,642
(20,93,000*1500000/2960000)
Ta able LTCG 6,32,358
Ta on short term listed equit shares & units Sec 111A
STCG a i ing f om

a) An e i ha e in a com an , o
b) Uni of an e i o ien ed f nd, o O he a e
c) A ni of a b ine

Ta ed a 15%* Ta ed a lab a e o fla

a e , a he ca e ma be
*If he follo ing condi ion a e a i fied:
1. The an ac ion of ale ake lace on o af e 1/10/2004; and
2. Sec i ie an ac ion a (STT) i cha geable on ch an ac ion
Note: In case of resident individual & HUF, basic e emption limit (BEL) should
be first utilised for income other than STCG & balance, if an , can be used
against STCG (benefit of availing BEL is not applicable to non residents).
Deductions under Chapter VIA cannot be claimed b an assessee.
 Ta on LTCG Sec 112
LTCG a i ing f om

An a e

Ta ed a 20%
Note:
1. Whe e he an fe ed LTCA i in he na e of li ed ec i ie
(o he han a ni ) o a e o co on bond, he gain a i ing f om he
an fe of ch ec i ie hall be liable o a @ 10% on ch
LTCG com ed i ho he benefi of inde a ion o @ 20% on
ch LTCG com ed a ailing he benefi of inde a ion,
hiche e i mo e beneficial o he a e e.
2. LTCG a i ing f om an fe of bond / deben e (o he han
Ca i al Inde ed bond i ed b he Go e nmen & So e eign
Gold Bond i ed b he RBI) a e no eligible fo inde a ion
benefi .
 Ta on LTCG Sec 112
3. Fo he o e of com a ion of long e m ca i al gain / 48,
hich i incl dible in he G o To al Income, he amo n of
Ca i al Gain com ed b a l ing inde a ion hall be con ide ed.
4. The o ibili of a l ing 10% / 20% a a e hall a i e onl in a
ca e he e he li ed ha e a e no aded h o gh a ecogni ed
ock e change and no cha geable o ec i ie an ac ion a .
O he i e, he an fe of li ed ha e i deal / 112A.
5. Sec 112 i bjec o o i ion of ec. 112A. Im l ing ha he e
ec. 112A i a licable, ec. 112 hall no a l .

Note:
• In case of resident individual & HUF, basic e emption limit (BEL) should be
first utilised for income other than LTCG & balance, if an , can be used
against LTCG (benefit of availing BEL is not applicable to non residents).
• Deductions under Chapter VIA cannot be claimed b an assessee.
Ta on long term listed equit shares & units
Sec 112A
The o i ion of hi ec ion a e a licable if he o al income of an
a e e incl de ca i al gain a i ing f om an fe of a long- e m
ca i al a e in he na e of:
1. An e i ha e in a com an , o
2. A ni of an e i -o ien ed f nd, o
3. A ni of a b ine
and a e bjec o a men of ec i ie an ac ion a (STT) a
belo :
a) Equit shares of a compan : STT o be aid on i ac i i ion
and an fe
b) Units of an equit oriented fund / business trust: STT o be aid
on i an fe

The provisions of this section are applicable to all assesses

Ta on long term listed equit shares & units
Sec
The co of ac i i ion fo he
112A
o e of com ing ca i al gain in
e ec of ha e o ni efe ed o / 112A and ac i ed b he
a e e on / befo e 31 Jan a 2018 hall be he highe of he
follo ing:
1. Ac al co of ac i i ion (COA) of he a e , and
2. Lo e of he:
a) Fai ma ke al e (FMV) of ch a e , and
b) The f ll al e of con ide a ion ecei ed o ecei able on
acco n of an fe of ch ca i al a e
• COA of bon o igh ha e hall be de e mined ba ed on he
e iod of allo men of ch ha e :
1. Sha e allo ed on / befo e 31/1/2018: COA hall be de e mined
a di c ed abo e
2. Sha e allo ed on / af e 1/2/2018: COA of bon ha e hall
be NIL hile ha of igh ha e hall be he amo n aid o
cha e ch ha e
• The benefi of inde a ion hall no be allo ed hile com ing he
LTCG bjec o a / 112A.
Ta on long term listed equit shares & units
Sec 112A
Fai ma ke al e (FMV) hall mean:
Situation FMV
Whe e he ca i al a e (CA) i li ed on FMV hall be he highe ice of he CA
an ecogni ed ock e change a on o ed on ch ock e change on he
31/1/2018 aid da e. In ca e if he e i no ading in
ch a e a on 31/1/2018, he highe
ice aded on a da e immedia el
eceding 31/1/2018 hall be ado ed a
FMV
Whe e he CA i a ni hich i no li ed The ne a e al e of ch ni a on he
on an ecogni ed ock e change a on aid da e
31/1/2018
Ta on long term listed equit shares & units
Sec 112A
Fai ma ke al e (FMV) hall mean:
Situation FMV
In a ca e he e he ca i al a e i an FMV hall be e i alen o he inde ed
e i ha e in a com an , hich i : co of ac i i ion (inde a ion hall be
1) No li ed on a ecogni ed ock done onl ill he financial ea 2017-18)
e change a on 31/1/2018 b li ed
on ch e change on he da e of
an fe ;
2) Li ed on a ecogni ed ock
e change on he da e of an fe and
hich became he o e of he
a e e in con ide a ion of ha e
hich i no li ed on ch e change
a on 31/1/2018 b a of
an ac ion no ega ded a an fe
/ 47 (eg: amalgama ion, deme ge ,
e c.)
Ta on long term listed equit shares & units
Sec 112A
If he gi en condi ion a e f lfilled, income a on o al income of he
a e e hall be com ed a follo :

To al income

Amo n of LTCG co e ed / 112A Remaining o al income

If no e ceeding E ceed R . 1 lakh

R . 1 lakh Ta ed a lab a e o
fla a e , a he ca e
ma be
@ 10% on ca i al gain
Nil
e ceeding R . 1,00,000
Ta on long term listed equit shares & units
Sec 112A
Note:
• In ca e of e iden indi id al & HUF, ba ic e em ion limi (BEL)
ho ld be fi ili ed fo income o he han LTCG / 112A &
balance, if an , can be ed again LTCG / 112A (benefi of
a ailing BEL i no a licable o non e iden ).
• Ded c ion nde Cha e VIA canno be claimed b an a e e
and a eba e of R . 12,500 / 87A hall no be allo ed o ch
LTCG
 Illustration
M . A f ni he he follo ing info ma ion fo he ea ended 31/3/2020:
5,000 Sha e held in TechMahind a L d., a li ed com an . The e ha e
ee cha ed on 1/7/2017 @ R . 500 e ha e. Of he e ha e 3,000 e e
old on 18/11/2019 @ R . 900 e ha e. Hi a able income f om b ine
i R . 1,75,000. Highe Fai Ma ke Val e of ha e of TechMahind a L d.
Reco ded on 31/1/2018 on he ecogni ed ock e change a R . 750 e
ha e.
De e mine he amo n of a a able fo ele an a e men ea .
Solution
Computation of cost of acquisition:
Highe of:
1. Ac al co of ac i i ion, (3,000 500) o 15,00,000
2. Lo e of :
i. FMV on 31/1/2018 (3,000 750) 22,50,000
ii. F ll al e of con ide a ion (3,000 900) 27,00,000 22,50,000
Co of ac i i ion fo he o e of ca i al gain 22,50,000
 Solution
Computation of ta able capital gains:
F ll al e of con ide a ion 27,00,000
(-) Co of ac i i ion 22,50,000
Long e m ca i al gain (LTCG) 4,50,000
(-) E em / 112A 1,00,000
LTCG a able / 112A 3,50,000
Computation of total income and ta :
B ine income 1,75,000
Ca i al gain 3,50,000
Total income 5,25,000
Ta on abo e 27,500
(+) 4% heal h & ed ca ion ce 1,100
To al a a able 28,600
S.No. Particulars Section 112 Section 112A

1. What t pe of LTCA covers? A lie o an fe of all Long A lie o an fe of onl follo ing Long
Te m Ca i al A e defined a e Te m Ca i al A e :-
ec ion 2(29A) of he Ac . Equit share in a compan
Unit of Equit Oriented Fund
Unit of a business trust
2. Condition of pa ment of STT A lie on an fe of LTCA A lie onl hen follo ing condi ion a e
he he STT i aid o no . a i fied:-
LTCA STT Paid
On Acquisi On Trans
tion fer
E i ha e in a Ye Ye
com an
Uni of E i No Ye
O ien ed F nd
Uni of a b ine No Ye

Ho e e , abo e condi ion a e no a licable

if an fe co e nde b- ec ion (3) o (4).

3. Ta Rate Ta Ra e @ 20% o 10% Ta Ra e onl @ 10% in e ce of R . 1 lakh.

(i.e e em o 1 lac)
4. E emption of Rs. 1 lakh No Ye
5. Rebate u/s 87A Ye No Reba e
6. Inde ation benefit as per Ye No
2nd proviso to Section 48
 Surcharge
Total Income of an Surcharge
Individual
/HUF/AOP/BOI/AJP
lakhs upto crore of income tax

crore upto crore of income tax

crore upto crore of income tax

crore of income tax

Ill s ra ion

Comp e o al income and a liabili

Solution
Computation of tax liability

Note

The BEL should be first exhausted against Salary of Rs then Capital Gain Lottery
winnings are taxed at flat rate

Illustration Computation of total income

Solution
 DEDUCTIONS FROM GROSS TOTAL INCOME

Ded ctions nder section 80C to 80U are allo ed from gross total income to comp te total income.
1 As per section 112 & 112A, s ch ded ctions are not allo ed from long term capital gains.
2 As per section 58(4), s ch ded ctions are not allo ed from cas al income.
3 As per section 111A, s ch ded ctions are not allo ed from short term capital gains on the sale of short
term eq it shares or short term nits of eq it oriented m t al f nds pro ided sec rities transaction ta
has been paid.

Section 80C:
Ded ction nder section 80C shall be allo ed onl to
(i) an indi id al, or
(ii) Hind Undi ided Famil (HUF)
(Ded ction nder section 80C is not allo ed to an partnership firm or a compan etc.)
Ded ction shall be allo ed to the e tent of the follo ing in estments b t s bject to a ma im m of 1,50,000
(Incl ding ded ction nder section 80C, section 80CCC and section 80CCD).

Eligible Investments

1) S bscription to National Sa ings Certificates iss ed nder Go ernment Sa ings Certificates Act 1959.
(accr ed interest shall also q alif for ded ction nder section 80C). Amo nt can be in ested in the name of
self, spo se or minor children and HUF can in est the amo nt in the name of an of its members.
2) Deposit in P blic Pro ident F nd acco nt and the acco nt can be opened in the name of self, spo se or
children.
3) In estment in fi ed deposit for a period of 5 ears or more ith sched led banks,
4) Pa ment of Ins rance Premi m in connection ith Ins rance on the Life of self, spo se and children and
Hind Undi ided Famil can take the polic in the name of an of its members.
a) Ho e er, the premi m paid cannot e ceed 10% (20% if polic iss ed on or before 31/3/2012) of the
capital s m ass red, other ise ded ction shall be allo ed onl for 10% (20%).
b) Children ma be dependant or independent or ma be married or nmarried or step or adopted.
c) As per section 10(10D), an pa ment recei ed on mat rit of ins rance polic shall be e empt from
income ta i.e. e en the amo nt of bon s recei ed shall be e empt from income ta .
d) Pa ment of premi m hich is in e cess of 10 per cent (if polic is iss ed on or after 1-4-2013, 15% in
case of ins rance on life of person ith disabilit referred to in section 80U or s ffering from disease or
ailment specified in section 80DDB/r le 11DD) of act al capital s m ass red shall not be incl ded in
gross q alif ing amo nt.
5) Pa ment of t ition fees to School, College, Uni ersit or an other Ed cational Instit tion in India pro ided
the fees has been paid in connection ith the children of the assessee and f rther for ma im m t o children
and it sho ld be hole time ed cation. Children shall incl de e en adopted and step children also.
6) Repa ment of the amo nt borro ed b the assessee for the p rposes of P rchase or Constr ction of a
residential ho se propert ( Principal repa ment of HP), the income from hich is chargeable to ta nder
the head income from ho se propert and the amo nt as borro ed from the Central Go ernment, an
Bank, Life Ins rance Corporation or National Ho sing Bank and Other Notified persons.
It ill not incl de an pa ment to ards Interest or pa ment to ards loan taken for Addition, Alteration, or
Repairs etc of the ho se propert .
7) Emplo ees contrib tion to SPF/ RPF/ appro ed s perann ation f nd. (It sho ld not be a repa ment of loan)
8) In estment in Unit Linked Ins rance Plan 1971 of UTI (ULIP) amo nt can be in ested in the name of self,
spo se or children.
9) In estment in Unit Linked Ins rance Plan of LIC M t al F nd (i.e. Dhanraksha scheme of LIC M t al
F nd) amo nt can be in ested in the name of self, spo se or children.
10) As s bscription to an Units of M t al F nd Notified nder section 10(23D) or the Units of UTI.
11) Contrib tion to Notified Pension F nd set p b M t al F nd or UTI and amo nt can be in ested onl b an
indi id al.
12) S bscription to Notified Deposit Schemes of National Ho sing Bank (NHB) e.g. s bscription to Home Loan
Acco nt Scheme of NHB. E en accr ed interest shall q alif for ded ction nder section 80C.
13) Amo nt can also be in ested in an notified Pension f nd set p b the National Ho sing Bank.
14) Fi e Year Post Office Time Deposit Acco nt. Pa ment of interest shall be gi en on ann al basis and interest
recei ed is ta able.
15) Senior Citi ens Sa ings Scheme.
16) An s m deposited d ring the ear in S kan a Samriddhi Acco nt b an indi id al
17) An other in estment notified nder section 80C

Section 80D: Deduction in respect of medical insurance

1. Ded ction shall be allo ed onl to an indi id al or Hind Undi ided Famil .
2. Ded ction shall be allo ed if the assessee has made pa ment to ards
(i) Medical ins rance premi m & pre enti e health check- p, or
(ii) Central Go ernment Health Scheme or
(iii) Medical e pendit re (senior citi en)
3. Indi id al can make pa ment for spo se or dependent children and ded ction shall be allo ed eq al to the
amo nt paid b t s bject to a ma im m of Rs. 25,000 b t in case of senior citi en ded ction shall be allo ed
p to Rs. 50,000.
4. If the indi id al has taken polic in the name of parents (dependent or independent), additional ded ction
shall be allo ed to the e tent of the premi m paid b t ma im m Rs. 25,000, ho e er, if the polic has been
taken in the name of senior citi en, ded ction shall be allo ed to the e tent of Rs. 50,000.
5. Ded ction for Pre enti e Health Check p shall be ma im m Rs. 5,000 in aggregate for self, spo se,
dependent children and parents. (allowed in cash)
6. Hind Undi ided Famil can take the polic in the name of an of its members and ded ction shall be
allo ed in the similar manner.
7. Pa ment sho ld be made other ise than in cash b t pa ment for pre enti e health check- p can be made in
an manner.
8. The follo ing amo nt inc rred on medical e pendit re (senior citi en) can be claimed as ded ction:
a) An amo nt inc rred p to Rs. 50,000 on acco nt of medical e pendit re on the health of the assessee or
an member of his famil
b) An amo nt inc rred p to Rs. 50,000 on acco nt of medical e pendit re on the health of an parent of
the assessee.
Note: For claiming the above deduction with respect to medical expenditure, (given in point 8) such assessee
or member of family (or) parent of the assessee should be a senior citizen and no amount has been paid
towards insurance on the health of such person.
9. Medical ins rance shall be in accordance ith a scheme framed in this behalf b the General Ins rance
Corporation of India or b an other ins rer as appro ed b the Ins rance Reg lator and De elopment
A thorit (IRDA).

Eg. Deduction for the premium paid for Medical Insurance

Yo (as an indi id al or HUF) can claim a ded ction of Rs.25,000 nder section 80D on ins rance for self, spo se
and dependent children. An additional ded ction for ins rance of parents is a ailable p to Rs 25,000, if the are
less than 60 ears of age (Ma 50,000 for self and parents). If the parents are aged abo e 60, the ded ction amo nt
is Rs 50,000 (i.e Ma 75,000). In case, both ta pa er and parent(s) are 60 ears or abo e, the ma im m ded ction
a ailable nder this section is p to Rs.1 lakh.

Section 80DD: Deduction in Disabled Dependent

1. Ded ction is allo ed onl to a resident indi id al and a resident Hind Undi ided Famil .
 2. Ded ction is allo ed if the assessee has inc rred an e pendit re for the medical treatment, training and
rehabilitation etc. of a dependant disabled person, or has deposited an amo nt ith LIC or an other
ins rer for the benefit of s ch dependant.
3. Dependant in the case of an indi id al, means the spo se, children, parents, brothers and sisters ho are
dependant on the indi id al and in the case of Hind Undi ided Famil means an member of the Hind
Undi ided Famil ho is dependant on s ch Hind Undi ided Famil and has not claimed an ded ction
nder section 80U.
4. Ded ction allo ed shall be Rs. 75,000 irrespecti e of the e pendit re inc rred b the assessee and in case
of se ere disabilit , ded ction allo ed shall be Rs. 1,25,000.

5. The ded ction shall be allo ed onl if deposit scheme of the ins rance compan pro ides for pa ment of
ann it or l mp s m amo nt for the benefit of a dependant, being a person ith disabilit , in the e ent of
the death of the indi id al or the member of the Hind Undi ided Famil in hose name s bscription to
the scheme has been made and the assessee nominates either the dependant, being a person ith disabilit ,
or an other person or a tr st to recei e the pa ment on his behalf, for the benefit of the dependant, being a
person ith disabilit .
6. i. Where disabilit is 40% or more b t less than 80%(i.e 79%) fi ed ded ction of Rs 75,000.
7. ii. Where there is se ere disabilit (disabilit is 80% or more) fi ed ded ction of Rs 1,25,000.

Section 80U: Deduction in case of handicapped person

(1) In comp ting the total income of an individual, being a resident, ho, at an time d ring the pre io s ear, is
certified b the medical a thorit to be a person ith disabilit , there shall be allo ed a ded ction of a s m of
75,000.
Provided that here s ch indi id al is a person ith severe disability, the pro isions of this s b-section shall
ha e effect as if for the ords Rs. 75,000 , the ords Rs. 1,25,000 had been s bstit ted.
(2) E er indi id al claiming a ded ction nder this section shall f rnish a cop of the certificate iss ed b the
medical a thorit in the form and manner, as ma be prescribed, along ith the ret rn of income nder section
139, in respect of the assessment ear for hich the ded ction is claimed.

Section 80E: Deduction for payment of interest on loan taken for higher education

1. Ded ction is allo ed onl to an indi id al.

2. Ded ction is allo ed if the assessee has paid interest on loan taken b him from an financial instit tions or
an appro ed charitable instit tion.
3. Pa ment of interest sho ld be gi en o t of the income chargeable to ta .
4. The loan sho ld ha e taken for p rs ing higher ed cation hich means an co rse of st d p rs ed after
passing the Senior Secondar E amination or its eq i alent from an school, board or ni ersit recognised b
the Central Go ernment or State Go ernment or local a thorit or b an other a thorit a thorised b the
Central Go ernment or State Go ernment or local a thorit to do so.
5. Ed cation can be either of self or spo se or children.
6. The entire amo nt of interest paid b an indi id al is allo ed as ded ction.
7. No ded ction shall be allo ed for repa ment of the principal loan amo nt.
8. Ded ction is allo ed for a ma im m period of 8 ears starting from the ear in hich first pa ment of interest
as gi en or ntil the interest is paid in f ll b the assessee, hiche er is earlier.
9. Appro ed charitable instit tion means the instit tion notified b the Central Go ernment. Financial instit tion
means banking compan or other financial instit tion notified b the Go ernment.

Note: Higher studies pursued abroad is also eligible for deduction u/s 80E.
Section 80GG: Deduction in case of payment of rent

1. Ded ction is allo ed onl to an individual.

2. He sho ld not be getting any house rent allowance and also he is not being pro ided ith Rent Free
Accommodation by his employer.
3. He sho ld not ha e an ho se in his name or in the name of the spouse or in the name of minor child or in
the name of Hindu Undivided Family of hich he is a member, at a place here he ordinaril resides or
performs d ties of his office or emplo ment or carries on his b siness or profession.
4. Also if he has a ho se e en at an other place, it sho ld not be declared as self-occ pied.
5. He has paid rent for the accommodation taken b him for his residence.
6. Ded ction shall be allo ed to s ch indi id al in case of pa ment of rent and ded ction shall be allo ed to the
e tent of the least of the follo ing:
(i) Rent paid o er 10% of the adj sted total income
(ii) 5,000 p.m.
(iii) 25% of the adj sted gross total income

Adjusted Total Income = Gross Total Income Long term capital gains /s 112 & 112A Short term capital
gains /s 111A income from lotteries, cross ord p les, card games /s 115BB All Ded ction nder
Chapter VI-A e cept section 80GG

Section 80TTA: Deduction in respect of income by way of interest on savings account

Ded ction from gross total income of an indi id al or HUF, pto a ma im m of Rs. 10,000/- in respect of interest
on deposits in sa ings acco nt (not time deposits) ith a bank, co-operati e societ or post office, is allo able
.e.f. 01.04.2012

Section 80 TTB Interest Income

Deduction of Interest on Deposits for Senior Citizens

A ne section 80TTB has been inserted ide B dget 2018 in hich ded ctions ith respect to interest income
from deposits held b senior citi ens ill be allo ed. The limit for this ded ction is Rs.50,000.
No f rther ded ction nder section 80TTA shall be allo ed.

Section 80EEA -Deduction in respect of interest payable on loan taken for acquisition of residential house
property
(i) E b e a e ee: A i di id a h ha ake a a f ac i i i f e ide ia h e
e f a fi a cia i i i . I e e a ab e ch a d a if f
ded c i de hi ec i .
(ii) C d : The c di i be a i fied f a ai i g hi ded c i a e a f
 Condition

(i) Quantum of deduction: The ma im m ded ction allo able is ` 1,50,000. The
ded ction of pto ` 1,50,000 nder section 80EEA is o er and abo e the ded ction a ailable
nder section 24(b) in respect of interest pa able on loan borro ed for acq isition of
a residential ho se propert . In respect of self-occ pied ho se propert , interest
ded ction nder section 24(b) is restricted to ` 2,00,000. In case of let o t or deemed to be let
o t propert , e en tho gh there is no limit nder section 24(b), section 71(3A) restricts the
amo nt of loss from ho se propert to be set-off against an other head of income to `
2,00,000. Accordingl , if interest pa able in respect of acq isition of eligible ho se propert
is more than ` 2,00,000, the e cess can be claimed as ded ction nder section 80EEA, s bject
to f lfilment of conditions.

Deduction in respect of interest payable on loan taken for purchase of electric vehicle
[Section 80EEB]
(i) Eligible Assessee: An indi id al ho has taken a loan for p rchase of an electric ehicle
from an financial instit tion. Interest pa able on s ch loan o ld q alif for ded ction
nder this section.

Conditions

Quantum of deduction: Interest pa able, s bject to a ma im m of` 1,50,000.

 Deduction for interest on loan borrowed for acquisition of house property by an individual
[Section 80EE]
(i) Eligible assessee: An indi id al ho has taken a loan for acq isition of residential ho se
propert from an financial instit tion. Interest pa able on s ch loan o ld q alif for
ded ction nder this section.
(ii) Conditions: The conditions to be satisfied for a ailing this ded ction are as follo s

Conditions

` 35 lakhs

(iii) Period of benefit: The benefit of ded ction nder this section o ld be a ailable till the
repa ment of loan contin es.
(iv) Q ant m of ded ction: The ma im m ded ction allo able is ` 50,000. The ded ction of pto
` 50,000 nder section 80EE is o er and abo e the ded ction of pto ` 2,00,000 a ailable
nder section 24 for interest paid in respect of loan borro ed for acq isition of a self-
occ pied propert .
 De ecia ion
Block of a e
a e

PART A

TANGIBLE ASSETS

I. BUILDING [S Notes 1 to 4 belo the Table]

(1) Buildings hich are used mainl for

residential purposes e cept hotels and boarding 5

houses

(2) Buildings other than those used mainl for

residential purposes and not co ered b sub- 10

items (1) abo e and (3) belo

(3) Buildings acquired on or after the 1st da of

September, 2002 for installing machiner and

plant forming part of ater suppl project or

ater treatment s stem and hich is put to use 40

for the purpose of business of pro iding infra-

structure facilities under clause ( ) of sub-section

(4) of section 80-IA

(4) Purel temporar erections such as ooden
40
structures

II. FURNITURE AND FITTINGS De ecia ion

a e

Furniture and fittings including electrical fittings

10
[S Note 5 belo the Table]

III. MACHINERY AND PLANT De ecia ion

a e

(1) Machiner and plant other than those

co ered b sub-items (2), (3) and (8) belo : 15

[See Note 5A belo the Table]

(2) (i) Motor cars, other than those used in a

business of running them on hire, acquired or put

15
to use on or after the 1st da of April, 1990

e cept those co ered under entr (ii);

(ii) Motor cars, other than those used in a

business of running them on hire, acquired on or 30

after the 23rd da of August, 2019 but before the

1st da of April, 2020 and is put to use before

the 1st da of April, 2020.

(3) ( ) Aeroplanes Aeroengines 40

( ) (a) Motor buses, motor lorries and motor

ta is used in a business of running them on hire 30

other than those co ered under entr (b).

(b) Motor buses, motor lorries and motor ta is

used in a business of running them on hire,

acquired on or after the 23rd da of August, 2019 45

but before the 1st da of April, 2020 and is put to

use before the 1st da of April, 2020.

( ) Commercial ehicle hich is acquired b the

assessee on or after the 1st da of October,

1998, but before the 1st da of April, 1999 and is

put to use for an period before the 1st da of

40
April, 1999 for the purposes of business or

profession in accordance ith the third pro iso to

clause ( ) of sub-section (1) of section

32 [S Note 6 belo the Table]

( ) Ne commercial ehicle hich is acquired 40

on or after the 1st da of October, 1998, but
before the 1st da of April, 1999 in replacement

of condemned ehicle of o er 15 ears of age

and is put to use for an period before the 1st

da of April, 1999 for the purposes of business

or profession in accordance ith the third pro iso

to clause ( ) of sub-section (1) of section

32 [S Note 6 belo the Table]

( ) Ne commercial ehicle hich is acquired

on or after the 1st da of April, 1999 but before

the 1st da of April, 2000 in replacement of

condemned ehicle of o er 15 ears of age and

is put to use before the 1st da of April, 2000 for 40

the purposes of business or profession in

accordance ith the second pro iso to clause ( )

of sub-section (1) of ec ion 32 [S Note 6

belo the Table]

( ) Ne commercial ehicle hich is acquired

on or after the 1st da of April, 2001 but before

the 1st da of April, 2002 and is put to use

40
before the 1st da of April, 2002 for the purposes

of business or profession [S Note 6 belo the

Table]
( ) Ne commercial ehicle hich is acquired

on or after the 1st da of Januar , 2009 but

before the 1st da of October, 2009 and is put to

40
use before the 1st da of October, 2009 for the

purposes of business or profession

[S paragraph 6 of the Notes belo this Table]

( ) Moulds used in rubber and plastic goods

30
factories

( ) Air pollution control equipment, being

Electrostatic precipitation s stems,

Felt-filter s stems,

Dust collector s stems, 40

Scrubber-counter current/ enture /packed bed/

c clonic scrubbers( )

Ash handling s stem and e acuation s stem

( ) Water pollution control equipment, being

Mechanical screen s stems,

Aerated detritus chambers (including air

40
compressor),

Mechanicall skimmed oil and grease remo al

s stems,

Chemical feed s stems and flash mi ing

equipment,

Mechanical flocculators and mechanical reactors

Diffused air/mechanicall aerated acti ated

sludge s stems,

Aerated lagoon s stems,

Biofilters,

Methane-reco er anaerobic digester s stems,

Air floatation s stems Air/steam stripping

s stems,

Urea H drol sis s stems,

Marine outfall s stems,

Centrifuge for de atering sludge,

Rotating biological contractor or bio-discIon

e change resin column( ) Acti ated carbon

column

( ) ( ) Solid aste control equipments being

caustic/lime /chrome/ mineral/cr olite reco er

s stems 40

( ) Solid aste rec cling and resource reco er

s stems

( ) Machiner and plant, used in semi-

30
conductor industr co ering all integrated circuits

(ICs) (e cluding h brid integrated circuits)

ranging from small scale integration (SSI) to

large scale integration/ er large scale

integration (LSI/VLSI) as also discrete semi-

conductor de ices such as diodes, transistors,

th ristors, triacs, etc., other than those co ered

b entries ( ), ( ) and ( ) of this sub-item and

sub-item (8) belo

( ) Life sa ing medical equipment, being

D.C. Defibrillators for internal use and pace

makers

Haemodial sors,

Heart lung machine,

Cobalt Therap Unit

Colour Doppler,

SPECT Gamma Camera,

Vascular Angiograph S stem including Digital 40

subtraction Angiograph ,

Ventilator used ith anaesthesia apparatus,

Magnetic Resonance Imaging S stem,

Surgical Laser [See Note 5B],

Ventilators other than those used ith

anaesthesia,

Gamma knife,

Bone Marro Transplant Equipment including

silastic long standing intra enous catheters for

chemotherap ,

Fibreoptic endoscopes including Paediatric

resectoscope/audit resectoscope,

Peritoneoscopes, Arthoscope,

Microlar ngoscope, Fibreoptic Fle ible Nasal

Phar ngo Bronchoscope, Fibreoptic Fle ible

Lar ngo Bronchoscope, Video Lar ngo

Bronchoscope and Video Oesophago

Gastroscope, Stroboscope, Fibreoptic Fle ible

Oesophago Gastroscope( ) Laparoscope (single

incision)

(4) Containers made of glass or plastic used as

40
re-fills

(5) Computers including computer soft are

40
[S note 7 belo the Table]

(6) Machiner and plant, used in ea ing,

processing and garment sector of te tile

industr , hich is purchased under TUFS on or

after the 1st da of April, 2001 but before the 1st 40

da of April, 2004 and is put to use before the

1st da of April, 2004 [S Note 8 belo the

Table]
(7) Machiner and plant, acquired and installed

on or after the 1st da of September, 2002 in a

ater suppl project or a ater treatment s stem

and hich is put to use for the purpose of 40

business of pro iding infrastructure facilit under

clause ( ) of sub-section (4) of section 80-

IA [S Notes 4 and 9 belo the Table]

(8) ( ) Wooden parts used in artificial silk

40
manufacturing machiner

( ) Cinematograph films bulbs of studio lights 40

( ) Match factories Wooden match frames 40

( ) Mines and quarries : Tubs, inding ropes,

haulage ropes and sand sto ing pipesSafet 40

lamps

( ) Salt orks Salt pans, reser oirs and

condensers, etc., made of earth , sand or 40

cla e material or an other similar material

( ) Flour mills Rollers 40

( ) Iron and steel industr Rolling mill rolls 40

( ) Sugar orks Rollers 40

( ) Energ sa ing de ices, being A.

Specialised boilers and furnaces:

Ignifluid/fluidi ed bed boilers,

Flameless furnaces and continuous pusher t pe

furnaces, 40

Fluidi ed bed t pe heat treatment furnaces,

High efficienc boilers (thermal efficienc higher

than 75 per cent in case of coal fired and 80 per

cent in case of oil/gas fired boilers)

B. Instrumentation and monitoring s stem for

monitoring energ flo s: Automatic electrical

load monitoring s stems,

Digital heat loss meters,

Micro-processor based control s stems,

40
Infra-red thermograph ,

Meters for measuring heat losses, furnace oil

flo , steam flo , electric energ and po er

factor meters,

Ma imum demand indicator and clamp on po er

meters,
E haust gases anal ser( ) Fuel oil pump test

bench

C. Waste heat reco er equipment: Economisers

and feed ater heaters,

Recuperators and air pre-heaters, 40

Heat pumps( ) Thermal energ heel for high

and lo temperature aste heat reco er

D. Co-generation s stems: Back pressure pass

out, controlled e traction, e traction- -

condensing turbines for co-generation along ith

pressure boilers, 40

Vapour absorption refrigeration s stems,

Organic rankine c cle po er s stems,

Lo inlet pressure small steam turbines

E. Electrical equipment: Shunt capacitors and

s nchronous condenser s stems,

Automatic po er cut off de ices (rela s)

mounted on indi idual motors, 40

Automatic oltage controller,

Po er factor controller for AC motors,

Solid state de ices for controlling motor speeds,

Thermall energ -efficient stenters ( hich

require 800 or less kilocalories of heat to

e aporate one kilogram of ater),

Series compensation equipment,

Fle ible AC Transmission (FACT) de ices

Th ristor controlled series compensation

equipment,

Time of Da (ToD) energ meters,

Equipment to establish transmission high a s

for National Po er Grid to facilitate transfer of

surplus po er of one region to the deficient

region,

Remote terminal units/intelligent electronic

de ices, computer hard are/soft are,

router/bridges, other required equipment and

associated communication s stems for

super isor control and data acquisition s stems,

energ management s stems and distribution

management s stems for po er transmission

s stems,

Special energ meters for A ailabilit Based

Tariff (ABT)

F. Burners: 0 to 10 per cent e cess air burners,

Emulsion burners( ) Burners using air ith high 40

pre-heat temperature (abo e 300 C)

G. Other equipment: Wet air o idation equipment

for reco er of chemicals and heat,

Mechanical apour recompressors,

Thin film e aporators,

Automatic micro-processor based load demand

controllers, 40

Coal based producer gas plants,

Fluid dri es and fluid couplings,

Turbo charges/super-charges,

Sealed radiation sources for radiation processing

plants

( ) Gas c linders including al es and regulators 40

( ) Glass manufacturing concerns Direct fire

40
glass melting furnaces

( ) Mineral oil concerns: Plant used in field

operations (abo e ground) distribution

Returnable packages,

Plant used in field operations (belo ground), but 40

not including kerbside pumps including

underground tanks and fittings used in field

operations (distribution) b mineral oil concerns

( ) Oil ells not co ered in clauses (a) and (b)
15
( ith effect from the assessment ear 2016-17)

( ) Rene al energ de ices being Flat plate

solar collectors,

Concentrating and pipe t pe solar collectors,

Solar cookers,

Solar ater heaters and s stems,

Air/gas/fluid heating s stems,

Solar crop driers and s stems,

Solar refrigeration, cold storages and air-

conditioning s stems,

Solar steels and desalination s stems,

Solar po er generating s stems,

Solar pumps based on solar-thermal and solar- 40

photo oltaic con ersion,

Solar-photo oltaic modules and panels for ater

pumping and other applications,

Windmills and an speciall designed de ices

hich run on ind-mills installed on or before

March 31, 2012,

An special de ices including electric generators

and pumps running on ind energ installed on

or before March 31, 2012

Biogas plant and biogas engines,

Electricall operated ehicles including batter

po ered or fuel-cell po ered ehicles,

Agricultural and municipal aste con ersion

de ices producing energ ,

Equipment for utilising ocean aste and thermal

energ ,

Machiner and plant used in the manufacture of

an of the abo e sub-items

(9) ( ) Books o ned b assessees carr ing on a

profession Books, being annual publications,

40
Books, other than those co ered b entr ( )

abo e

( ) Books o ned b assessees carr ing on

40
business in running lending libraries

IV. SHIPS De ecia ion a e

(1) Ocean-going ships including dredgers, tugs,

barges, sur e launches and other similar ships

20
used mainl for dredging purposes and fishing

essels ith ooden hull

20
(2) Vessels ordinaril operating on inland
 aters, not co ered b sub-item (3) belo

(3) Vessels ordinaril operating on inland aters

being speed boats [S Note 10 belo the 20

Table]

PA B

INTANGIBLE ASSETS De ecia ion a e

Kno -ho , patents, cop rights, trademarks,

licences, franchises or an other business or 25

commercial rights of similar nature

 E emptions a ailable in comp tation of Capital gains

Sec Eligible Nat re of asset transferred Nat re of asset acq ired Time limit for acq iring ne Q ant m of
assesse asset e emption
54 Individual, Transfer of a residential house One* Residential house situated in India Within: Cost of ne
HUF (building or land appurtenant is: a) 1 ear before or 2 ears residential house
thereto) hich is a LTCA & income a) Purchased after the date of transfer OR
from such asset is chargeable under OR OR Capital gains
IHP b) Constructed b) 3 ears after the date of hichever is lo er
transfer
54B Individual, Urban agricultural land hich as Another agricultural land is acquired Within 2 ears from the date of Cost of ne
HUF used in 2 ears immediatel (rural or urban) transfer agricultural land
preceding the date of transfer b OR
assesse / parents or HUF for Capital gains
agricultural purposes hichever is lo er
54D An Land / building / an right in land or Land / building / an right in land or Within 3 ears from the date of Cost of ne asset
assesse building forming part of an building is purchased / constructed for transfer OR
industrial undertaking is transferred shifting / re-establishing the e isting Capital gains
under compulsor acquisition. It industrial undertaking or setting up hichever is lo er
should have been used in 2 ears another industrial undertaking
immediatel preceding the date of
transfer b assesse for business
purpose
54 An A LTCA being land / building / both The amount of capital gains should have Within 6 months from the date Amount invested in
EC assesse been invested in the specified bonds of transfer specified bonds OR
issued b : (redeemable after 5 ears capital gains
issued on or after 1/4/2018) hichever is lo er
1. Rural Electrification Corporation The ma imum
Limited, or amount of investment
2. National High a s Authorit of shall not e ceed Rs.
India, or 50 lakhs during the
3. Po er Finance Corporation FY in hich transfer
Limited, or is made & in the
4. Indian Rail a Finance subsequent FY
Corporation Limited, or
5. An other bond notified b Central
Government
54 An assesse A Long term capital asset The amount of capital gains should have been Within 6 months from the date of Amount invested in
EE invested in a long term specified asset (i.e. transfer specified asset OR
units of specified fund, as notified b Central capital gains hichever
Government, and issued before 1st April 2019) is lo er
The ma imum amount
of investment shall not
Note: This objective of the section is to create a Fund of Funds to incentivise the start-up ecos stem in India e ceed Rs. 50 lakhs
during the FY in hich
transfer is made & in
the subsequent FY
54F Individual, An long term capital asset other than a Residential house situated in India is: Within: Cost of ne HP < Net
HUF residential house propert a) Purchased a) 1 ear before or 2 ears consideration
OR after the date of transfer E emption = cost of
b) Constructed OR ne HP / Net
b) 3 ears after the date of consideration LTCG
transfer Cost of ne HP Net
consideration than
entire LTCG is e empt
Additional conditions to a ail the abo e e emption /s 54F:
1. The assesse does not o n more than 1 residential house on the date of transfer, other than the ne asset, and
2. Other than the ne asset, the assesse does not ithin a period of 2 ears after the date of transfer, purchase / ithin 3 ears construct an additional residential house
54G An assesse Machiner / plant / building / land or Purchased machiner , plant, building, land or Within 1 ear before or 3 ears Cost of ne asset +
an rights in building or land used for constructed building & completed shifting of after the date of transfer e penses for shifting
business of an industrial undertaking original assets to the ne area and incurred capital gains (CG)
situated in urban area is transferred, due e penses on shifting E emption = CG
to shifting to an area other than an Other ise CG to the
urban area e tent of the cost of the
ne asset & balance is
ta able

* In case if the amount of the capital gain does not e ceed Rs. 2 crores, the assessee (individual / HUF) ma , at his option, purchase t o residential houses in India ithin 1
ear before or 2 ears after the date of transfer or construct t o residential houses in India ithin 3 ears after the date of transfer.
Where such option has been e ercised during an assessment ear, he shall not be subsequentl entitled to e ercise the option for the same or an other assessment ear.

Other option for all of the abo e sections: Until acquisition of ne asset amount of capital gain / net consideration, as the case ma be, should be deposited in Capital Gain
Account Scheme (CGAS) in a bank before filing the return of income or ithin the due date for furnishing the return of income u/s 139(1) hichever is earlier.
INC ME F MH E E
 Income f om Ho e p ope Sec 22-27
According o Sec ion 22 of he ac , income from ho se proper means
ann al al e of proper , consis ing of an b ilding or lands connec ed
here o, of hich he assessee is he o ner.

Condi ion :
• Proper m s be as specified nder he ac and assessee m s be
o ner of he proper .
• Proper m s no be occ pied b he o ner for he p rpose of an
b siness or profession as he same o ld be a able nder he head
Profi s and Gains of b siness or Profession.

Income from Foreign Proper Ta abili depends on residen ial s a s

T pe of proper : SOP, LOP, DLOP & SIT.

 Deemed O ne

Transfer o Spo se /Minor Child.

Holder of impar ible es a e.
Member of Co-opera i e socie .
Person is possession of proper hro gh
a orne .
Person ha ing righ in proper for no less
han 12 ears.
 Deemed O ne hip Sec 27
In he follo ing cases he person is deemed o be o ner of he proper e en if he
are no he legal o ners of he proper :-
1) An indi id al ho ransferred his proper i ho adeq a e considera ion o his
or her spo se (o her ise han in connec ion i h an agreemen o li e apar ), his
minor child (no being married da gh er) is deemed o be o ner of ha proper .
If an indi id al ransfers ano her asse and his spo se or minor child p rchase ho se proper
from ha asse , hen s ch indi id al is no rea ed as deemed o ner.
2) If proper is allo ed b compan /co opera i e socie o is
shareholders/members, hen echnicall he compan /coopera i e socie ma be
he o ner. B he shareholder/member o hom proper is allo ed is deemed o
be o ner of proper .
3) Holder of a impar ible es a e is deemed o be he indi id al o ner of all he
proper ies comprised in he es a e
4) If b er has aken he possession of he proper i ho ge ing he sale deed
regis ered is deemed o be o ner of he proper . Who is allo ed o ake or re ain
possession of an b ilding (or par hereof) in par performance of a con rac of he
na re referred in he Transfer of Proper Ac , 1882, is also deemed as he o ner
of ha b ilding (or par hereof).
5) A person ho acq ires an righ s (e cl ding an righ s b a of a lease for a
period no e ceeding one ear) in or i h respec o an b ilding (or par hereof)
for a erm no less han 12 ears.
Ba i f Cha ge
T eI c e d be f Le f e
P e .(U e f e H eP e
a e a)
 Comp a ion of Income f om HP
Comp a ion of Income f om Ho e P ope
Particulars (Rs.) (Rs.)
Gross Annual Value (GAV) XX
Less: Municipal ta es paid XX
Net Annual Value (NAV) XX
Less: Deductions u/s 24
30% of NAV XX
Interest on loans paid / pa able* XX XX
Add: Unrealised rent recei ed (70%), XX
Arrears of rent recei ed (70%)
Income from house propert XX
* Ma imum Rs. 30,000 or Rs. 2,00,000 in case of SOP
 Comp a ion of G o Ann al Val e (GAV)
Fair Rent or Municipal Value Standard rent (if applicable)
( hiche er is higher) ( hiche er is lo er)

Reasonable lettable alue (RLV)/Final Fair Rent (FFR)

C m a e FFR / RLV i h Ac al Ren

If *Actual Rent > FFR / RLV If *Actual Rent < FFR / RLV

Then Actual Rent ill be GAV

Because of acanc then, Because of other

Actual Rent ill be GAV reasons then, FFR /
RLV ill be GAV
*U ea i ed Re
Se f Occ ied P e (SOP)
U cc ied P e
• If he o e i SOP fo o n e idence o
nocc ied h o gho he hole ea d e o
em lo men o b ine a a diffe en lace and he
e ide a o he lace no belonging o him, i
A a Va e ha be NIL .
• The abo e benefi of NIL i a ailable f
2 SOP cc ied e ie . (I,e one or
max two HP)
• No ded c ion of M nici al a e aid in he abo e
ca e i allo ed.
 Dee ed Le O P e
(DLOP)
• Inca e he e he a e ee e ha 2 HP
fo elf occ a ion, hen income an 2 HP can be
con ide ed a SOP a he o ion of he a e ee, and
he he e f cc ied cc ied e ie
hall be con ide ed a DEEMED LOP (N i a
I c e).
• I ca e f DLOP, RLV hall be aken a GAV, a
he e ion of con ide ing Ac al en doe no
a i e.
 No e:
1. If he ho se proper is le o for par of he ear and
self occ pied for he par of he ear, he na re of
proper shall be aken as Le o . Period of SOP shall
be irrele an . In his case e pec ed ren shall be aken
for f ll ear hich ill be compared i h ac al ren
recei ed for onl ha le o period.
2. In ere on in ere i no allo ed a ded c ion
3. M nicipal a es is allo ed as ded c ion onl on pa men
basis for he hole ear.(*)
4. In eres on loan is allo ed as ded c ion on accr al basis.
*M nicipal a hall be allo ed a ded c ion onl if i
i aid b he o ne d ring he PY.
5. If M nicipal a es are o s anding i canno be
claimed as ded c ion, i can be claimed in he ear
of pa men ., i.e if arrears of ren of pas ear are
paid in he c rren PY he i can be claimed as
ded c ion.
6. If he par of he ho se is LOP and ano her por ion
is SOP, hen Income shall be comp ed separa el
nder LOP and SOP ca egor e en ho gh i is
one single ni of ho se proper . In his case,
MV/FR/SR shall be appor ioned be een LOP &
SOP on propor iona e or reasonable basis.
5. R le 4- Un eali ed en :
a) The enanc is bonafide
b) The defa l ing enan has aca ed or s eps aken
o aca e him,
c) The defa l ing enan is no in occ pa ion of
an o her proper of he assessee;
d) The assessee has aken reasonable s eps/ legal
proceedings for he reco er of he ren .
 C i e Re

Si a ion 1
Where Composi e Ren incl de ren of b ilding
and charges for s pplemen ar ser ices .
E.g. Gas, elec rici , a er, lif ser ices, e c.

Then he al e of s ch ser ices sho ld be

de ermined and he B ilding Ren sho ld be
a ed nder Ho se Proper and ser ices ill be
a ed nder O her So rces or B siness Income.

14
 C i e Re
Si a ion 2
Where Composi e Ren incl de ren of b ilding
and o her asse s.
E.g. F rni re , Eq ipmen , e c.

The o her asse s are inseparable.

The o al ren incl ding for asse s is a ed nder
O her So rces or B siness Income.

15
 C i e Re
• Si a ion 3
Where Composi e Ren incl de ren of
b ilding and o her asse s.
E.g. F rni re , Eq ipmen , e c.

• The o her asse s are separable.

• The o al ren a rib able o b ilding is a ed
as Ho se Proper Income and ren for asse s
is a ed nder O her
• So rces or B siness Income.
 Sec 23(5): P ope held a ock in ade
The al e of he proper comprising of b ilding or land
app r enan here o shall be aken as Nil if he follo ing
condi ions are sa isfied:
• The proper has been held as s ock in rade, and
• I has no been le o for hole or par of he ear

No e: The benefi of Nil al e shall be a ailable for a period

p o 2 ears from he end of he FY in hich Cer ifica e of
comple ion is ob ained.
 In e e Ded c ion
Ded c ion for in eres on loan aken for he p rpose of
p rchase, cons r c ion, recons r c ion, repairs & reno a ions
ill be allo ed on accr al basis i.e. paid + o s anding ill be
allo ed as ded c ion.
There is no limi for ded c ion on in eres on loan for LOP &
DLOP. In eres rela ing o he ear of comple ion of
cons r c ion can be f ll claimed in ha ear irrespec i e of
he da e of comple ion.
Ho e er, on SOP ma im m amo n of ded c ion for in eres
on loan ill be res ric ed o Rs. 30,000 p.a.
This ma im m limi ill be Rs. 2,00,000 if he follo ing o
condi ions are sa isfied:
• Loan is aken on or af er 01/04/1999; AND
• Acq isi ion or cons r c ion of proper is comple ed i hin
5 ears from he end of he financial ear in hich s ch loan
as aken.
 P e Con c ion In e e
In eres pa able d ring he cons r c ion period preceding he
ear of comple ion of cons r c ion can be acc m la ed and
claimed as ded c ion o er a period of 5 ears in eq al
ins allmen s commencing from he ear of comple ion of
cons r c ion.

Eg: Loan of Rs. 25 lakhs @ 12% pa as aken on 1/1/2014. The

cons r c ion as comple ed on 1/1/2020. Comp e o al amo n
of in eres ded c ion.
Year ending preceding he ear of comple ion of cons r c ion is
31/3/2019. Th s in eres ill be acc m la ed for 1/1/2014 o
31/3/2019 i.e. 63 mon hs.
Acc m la ed in eres = 25,00,000 * 12% * 63/12 = 15,75,000
Rs. 15,75,000 ill be allo ed as ded c ion in 5 eq al
ins allmen s (Rs. 3,15,000) commencing from PY in hich
cons r c ion is comple ed i.e. 2019-2020
To al in eres ded c ion for 2019-20 = 3,00,000 + 3,15,000 =
6,15,000
 Addi ional Poin
Sec 25A: Special pro i ion for arrear of ren and
nreali ed ren recei ed b eq en l .

1. The amo n of arrears of ren recei ed from a enan or

he nrealised ren realised s bseq en l from a enan ,
shall be deemed o be he income from ho se proper in
respec of he financial ear in hich s ch ren is recei ed,
and shall be incl ded in he o al income of he assessee
nder he head "Income from ho se proper ", he her he
assessee is he o ner of he proper or no in ha financial
ear.

2. This ill be a ed as income from ho se proper af er

allo ing s andard ded c ion of 30%
 Sec.25 Inadmissible
ded c ion
• In eres chargeable nder his ac hich is
pa able o side India shall no be ded c ed if-
• A) Ta has no been paid or ded c ed from
s ch in eres and,
• B) in respec of hich here is no person in
India ho ma be rea ed as an agen .
 Addi ional Poin
Sec 26: Trea men of income from Co-o ned proper
Where he ho se proper is o ned b more han one o ner &
heir share is de erminable hen,
S ep I : calc la e income from ho se proper as per pro isions
as if he ho se proper is o ned b one person onl .
S ep II : share of each co-o ner ill be a ed as income from
ho se proper in heir indi id al capaci .

No e: In ca e of a elf occ pied proper each co-o ner i

eligible for independen in ere ded c ion limi of R . 30,000 or
R . 2,00,000 a he ca e ma be

If he hare of each co-o ner i no defined / de erminable, hen

Income from Ho e Proper hall be de ermined and charged
o a in he capaci of AOP.
 E ample
Mr. X took a loan of Rs. 100,000 @ 15% interest p.a. from HDFC on 1.4.2017
for the purpose of the construction of his house. The house as completed on
20.3.2020. Calculate the deductible amount of Interest from the Annual Value
for the Pre ious ear 2019-20 if the house is let out
Loan taken 100,000
Date of Loan 1.4.2017
Date of Construction complete 20.3.2020
PY preceeding ear of construction 31.3.2019
Rate of Interest 15%
Pre construction Interest 100,000 15/100 24m/12m = Rs. 30,000
Allo ed in 2019-20: Pre-construction 1/5*30000 = 6000 + 15000 this ear

O erall Limits for SOP remain, LOP no Limits

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME (E I )

A S 10(1)
Section 10(1) pro ides that agric lt ral income is not to be incl ded in the total income of the
assessee. The reason for total e emption of agric lt ral income from the scope of central
income-ta is that nder the Constit tion, the Central Go ernment has no po er to le a ta on
agric lt ral income.
Definition of agric lt ral income [Section 2(1A)]
This definition is er ide and co ers the income of not onl the c lti ators b t also the land
holders ho might ha e rented o t the lands. Agric lt ral income ma be recei ed in cash or in
kind.

Agric lt ral income ma arise in an one of the follo ing three a s:-
(1) It ma be rent or re en e deri ed from land sit ated in India and sed for agric lt ral
p rposes.
(2) It ma be income deri ed from s ch land b
(a) agric lt re or
(b) the performance of a process ordinaril emplo ed b a c lti ator or recei er of rent in
kind to render the prod ce fit to be taken to the market or
(c) the sale of s ch agric lt ral prod ce in the market.
(3) Lastl , agric lt ral income ma be deri ed from an farm b ilding req ired for
agric lt ral operations.

Whe her income from n rser cons i es agric l ral income?

Ye , a e E lana ion 3 ec 2(1A), c e de ed f a g eed g

g a e d be dee ed be ag c a c e, e e e
ba c e a e e ca ed a d.

A I : R les 7,
7A, 7B & 8 of Income-ta R les, 1962 pro ide the basis of apportionment of income bet een
agric lt ral income and b siness income.
 E.g. :- Mr. Shah is an agric lt rist. He is ha ing agric lt ral land in Nilgiri here he
gro s and man fact res tea. D ring the financial ear 2019-20, he prod ced tea
amo nting to Rs. 12 crores. Ho m ch ill be the ta able t rno er for F.Y. 2019-20?
Ans. :- Income-ta Act has pro ided that 60% shall be e empt from ta o t of total
man fact ring of tea in India. Hence, o t of Rs. 12 crores, agric lt ral portion is Rs. 7.20
crores. And ta able t rno er of Mr. Shah is Rs. 4.80 crores nder B siness and
Profession for financial ear 2019-20.

E S 10(16)
The al e of scholarship granted to meet the cost of ed cation o ld be e empt from ta in the
hands of the recipient irrespecti e of the amo nt or so rce of scholarship.

A , G
S 10(17A)
An a ard instit ted in the p blic interest b the Central/State Go ernment or b an other bod
appro ed b the Central Go ernment and a re ard b Central/State Go ernment for s ch
p rposes as ma be appro ed b the Central Go ernment in p blic interest, ill enjo e emption
nder this cla se.

P S 10(18)
(i) An income b a of pension recei ed b an indi id al is e empt from income-ta if
(a) s ch indi id al as an emplo ee of Central or State Go ernment and
(b) has been a arded Param Vir Chakra or Maha Vir Chakra or Vir Chakra or s ch
other gallantr a ard notified b the Central Go ernment in this behalf.
(ii) In case of the death of s ch indi id al, an income b a of famil pension recei ed b
an member of the famil of s ch indi id al shall also be e empt nder this cla se.
(iii) Famil , in relation to an indi id al, means
- The spo se and children of the indi id al; and
- The parents, brothers and sisters of the indi id als or an of them, holl or mainl
dependent on the indi id al.

RESTRICTIONS ON ALLOWABILITY OF EXPENDITURE SECTION 14A

As per section 14A, e pendit re inc rred in relation to an e empt income is not allo ed as a
ded ction hile comp ting income nder an of the fi e heads of income [S b-section (1)].
The Assessing Officer is empo ered to determine the amo nt of e pendit re inc rred in relation
to s ch income hich does not form part of total income in accordance ith s ch method as ma
be prescribed [S b-section (2)].
The method for determining e pendit re in relation to e empt income is to be prescribed b the
CBDT for the p rpose of disallo ance of s ch e pendit re nder section 14A. S ch method
sho ld be adopted b the Assessing Officer in the follo ing cases
(a) if he is not satisfied ith the correctness of the claim of the assessee, ha ing regard to the
acco nts of the assessee. [S b-section (2)]; or
(b) here an assessee claims that no e pendit re has been inc rred b him in relation to
income hich does not form part of total income [S b-section (3)].
R le 8D la s do n the method for determining the amo nt of e pendit re in relation to income
not incl dible in total income.
If the Assessing Officer, ha ing regard to the acco nts of the assessee of a pre io s ear, is not
satisfied ith
(a) the correctness of the claim of e pendit re b the assessee; or
(b) the claim made b the assessee that no e pendit re has been inc rred
in relation to e empt income for s ch pre io s ear, he shall determine the amo nt of
e pendit re in relation to s ch income in the manner pro ided here nder
The e pendit re in relation to income not forming part of total income shall be the aggregate of
the follo ing:
(i) the amo nt of e pendit re directl relating to income hich does not form part of total
income;

(ii) an amo nt eq al to 1% of the ann al a erage of the monthl a erages of the opening and
closing balances of the al e of in estment, income from hich does not form part of total
income.
Ho e er, the amo nt referred to in cla se (i) and cla se (ii) shall not e ceed the total
e pendit re claimed b the assessee.

Section A B National Pension Scheme

National Pension Scheme (NPS): National Pension Scheme is pension scheme la nched b the
go ernment of India to pro ide the old age sec rit to citi ens of India. It brings an attracti e
long-term sa ing a en e to effecti el plan o r retirement thro gh safe and reg lated market-
based ret rn.

Under NPS scheme all citi ens can in est, hether he is central go ernment emplo ee, state
go ernment emplo ee or a normal citi en.

I Deduction under section CCD

Section 80CCD(1) pro ide the ded ction for in estment in NPS (National Pension Scheme).
Ma im m ded ction of 1,50,000 a ailable considering other eligible in estments nder section
80C and Section 80CCC. It is important to note that, in case of salar , onl emplo ee
contrib tion is considered nder 80CCD(1).

The amo nt of ded ction shall not e ceed-

a. in case of an emplo ee, ten percent of his salar in the pre io s ear;

b. in an other case, ten percent of his gross total income in the pre io s ear.
II Deduction under section CCD B

In addition to ded ction nder section 80CCD(1) an additional ded ction is allo ed p-to
50,000.

No ded ction nder section 80CCD(1B) shall be allo ed in respect of the amo nt on hich
ded ction has been claimed nder section 80CCD(1).

III Deduction under section CCD

It is an extra deduction allowed over and above the , , . This benefit is only for salaried
employees. Deduction is available on the contribution made by central government or any other
employer to the employee s NPS account. However, amount of contribution should not exceed ten
percent of his salary in previous year.

The limit of has been e tended to in case of central government emplo ee onl There are
no amendment pertaining to State Government emplo ees and non government emplo ees

Following table provides the e tent of e emption available

0 0- 0 1

Pa a hd a a f NPS* E e

A ece ed b a e ee c e fh 60% e e
acc h g f he NPS. [ ec
10(12A)]

A ece ed b a ee he c e f N a ab e
acc g f he NPS af e dea h f he
e ee [P ec 80CCD(3)]

Pe ece ed f NPS Ta ab e

A ece ed c e, g a d e N a ab e
f NPS a d a e ed f cha ga
a he a e e ea . [Sec 80CCD(5)]

Pe ece ed fa a cha ed Ta ab e
A Fine i a Ta fo doing ome hing
ong.

A Ta i fine fo doing ome hing

Righ .
SYSTEM OF TAXATION BEFORE GST
 h go . charge a

G . I a a
- a a a , .
a a a a a a .

I a . a a
a ,G . a
. a a .

T , a a a a a b .a a
.

G . a a (D a a I a )
 Constitution of India

Central Structure State Structure

Parliament State Legislati e Assembl

Parliament can make la s for the Legislature of State ma make la s for
hole or an part of the territor of the hole or an part of the States.
India
 TYPES OF TAXES
Direct taxes
• A direct tax is that tax whose burden is borne by the
same person on whom it is levied. It is based on the
income and property of a person. Thus income tax,
corporation tax on company’s profits, property tax,
capital gains tax, etc are examples of direct taxes.

Indirect taxes
• An indirect tax is that tax which is initially paid by one
individual, but the burden of which is passed over to
some other individual who ultimately bears it. It is
levied on the expenditure of a person. Goods and
Service tax, custom duties etc are examples of indirect
taxes.
IMPACT OF INDIRECT TAXES &
BETTER TAX MANAGEMENT
Indirect Tax Scenario in India after
GST
 Source to Read Income Ta

Legal
Decision Of
Annual Income Ta
Income Ta High Court &
Finance Act Rules 1962
Act 1961 Supreme
Circulars &
Court
Notification
(Finance Act tells
(Income ta act (Rules are made
about the rates of
co ers basic to carr out basic (Decisions of
ta in ad ance
pro isions of pro isions of (Circulars are High
i.e. rates of ta
income ta , income ta issued for court/Supreme
for the ear in
Assessment effecti el and internal Court are final
hich assessee
procedures, efficientl . department decisions i.e.
ould earn the
Penalties & Ho e er in an orkings i.e. neither the
income. For
prosecutions i.e. case rules cannot circulars cannot assessee nor the
e.g..Finance act
computation of o erride the basic bind assessee and department can
2014 tells about
income, pro isions to notifications are challenge the
the rates of ta
computation of income ta i.e. issued for general decision of
for assessment
ta liabilit etc.) rules are sub- public.) Supreme Court.
ear 2015-16 i.e.
ordinate to the Note- High court
for the pre ious
act.) decision can be
ear 2014-15
challenged in
Supreme Court.)
 ADMINISTRATIVE SET UP

Ministr of Finance

Department of Re enue

The Central Board Of Direct Ta (CBDT)

Chief CIT ( Commissioner Of Income Ta )

CIT (APPEALS)

Assessing Officers
JCIT (Join CIT) ITO (Income Ta Officer) Additional or Deput CIT
Charging section / Super summary of
Income Tax [section ]
Every person, who is an assessee and
whose total income exceeds the
maximum exemption limit, shall be
chargeable to the income tax at the
rate or rates prescribed in the finance
act. Such income tax shall be paid on
the total income of the previous year
in the relevant assessment year.
INTERPRETATION OF CHARGING SECTION

• Person – section ( )
• Assessee – section ( )
• Assessment – section ( )
• Assessment year – section ( )
• Previous year – section
• Income - section ( )
• Rates of Tax
 PERSON [sec ( )]
i) Individual
ii) Hindu Undivided Family (HUF)
iii) Firm
iv) Company
v) Association of Persons (AOP) or Body of
Individuals (BOI) , whether incorporated or not
vi) Local Authority
vii) Every other Artificial Juridical Person
 SEC. ( ) ASSESSEE
• According to sec. ( ) assessee means &
includes:
• A person by whom any tax or any other sum
(penalty/interest) is payable.
• A person in respect of whom any proceeding
under the Act is taken.
Every person :
• who is assessable in respect of income or loss of
another person, or
• who is deemed to be an assessee, or
• who is deemed to be assessee in default.
 CLA IFICA I F I C ME:

Income Ta Act classifies Income into

al follo ing Heads:

IN 1 Salar

C ME
t
2 Ho se Propert Income

3 Income from B siness or Profession

4 Capital Gain

5 Income from Other So rces

 ASSESSMENT [Section ( )]
• Assessmen incl des reassessmen

• This is the procedure by which the income of

an assessee is determined by the Assessing
Officer. It may be by way of a normal
assessment or by way of reassessment of an
income previously assessed.
 Assessment year [Section ( )]
• It means the period of 1 months commencing
on the first day of April every year.
• The year in which tax is paid is called the
assessment year
• Income of previous year of an assessee is
taxed during the following assessment year at
the rates prescribed by the relevant Finance
Act.
 Previous year [Section ]
• It means the previous year as defined in section
. (As per law language)
• According to section , previous year means the
financial year immediately preceding the
assessment year.
• Our FY/PY is - . (Why?, Because tax cannot
be calculated without closing the books of
accounts on st march.)
• Hence AY of the above FY(PY) will be AY -
 Unders anding Pre io s Year
Assessmen Year
• / / ________________ / / PY also
known as Financial Year. Hence P.Y is -

• / / ________________ / /
Assessing income of previous year and pay tax
in this year, hence A.Y is -
• Hence Finance Act will be applicable for
our syllabus i.e for FY -
PERSONAL
TAXATION
 INCOME TAX SLAB (For A.Y. 2020-21/
P.Y 2019-20)

(A) Tax Slab Ta (B) Tax Slab Ta a +

(Individual/HUF/AOP/BOI/AJP) a + (Individual) 4% C
(Below 0 Year i.e ) 4% C ( 0 year and above till years
Resident or Non Resident i.e. Senior Citizens & Resident)

Up to . Lakhs Up to Lakhs

, , to Lakhs , , to Lakhs

, , to , , to Lakhs
Lakhs
Above Lakhs Above Lakhs
 (C) Ta S ab Ta (D) Ta S ab Ta
(I a) a + (F /L L ab a +
(80 a a ab . . 4% C 4% C
Pa /L a
V S C &
R )
A )
On the hole of total income 30%
Up to 5 Lakhs 0%

No e Normal tax rate plus

5,00,000 to 10 20% S rcharge of income tax
Lakhs where total income exceeds Rs.
, , . OR,
Abo e 10 Lakhs 30%
of income tax where total
income exceeds Rs. , , , .

Heal h and Ed ca ion cess - of

income tax and surcharge.
 REBATE OF INCOME-TAX IN CASE OF
CERTAIN INDIVIDUALS [ A
Law language- An assessee, being an individual
resident in India, whose total income does not
exceed Fi e lakh r pees , shall be
entitled to a ded c ion, from the amount of
income a total income after deductions under
Section on his Ne total income with which he is
chargeable for any assessment year, of an amount
equal to of such income-tax or an amount of
el e ho sand fi e h ndred r pees ,
whichever is less.
 REBATE OF INCOME-TAX IN CASE OF
CERTAIN INDIVIDUALS [ A
Simplified-
A resident individual is entitled for rebate (i.e
discount in tax before cess) under section A if his
Net total taxable income does not exceed Rs.
,00,000 (i.e less than or equal to).
AMOUNT OF REBATE-
) of income-tax OR
) Rs. , , whichever is less.
 REBATE OF INCOME-TAX IN CASE OF
CERTAIN INDIVIDUALS [ A
• Who can claim rebate under section A in FY
01 - 0?
The rebate shall be available if you satisfy both
these conditions:
• You are a RESIDENT INDIVIDUAL.
• Your Net Total Income Less Deductions (under
Section ) is equal to or less than Rs ,00,000
 REBATE U/S A
• Rebate is available only to Resident individuals
and not available to Non Residents NR.
• If the total tax payable by is less than Rs. 1 00/
rebate is restricted to “total tax payable”.
• Rebate is allowed before levy of Health and
Education Cess, and Surcharge.
• Rebate benefit is available to all category of
Individuals but not to Super Senior Citizen SSC,
since they are already fully exempted up to Rs.
lakh.
REBATE OF INCOME-TAX IN CASE OF
CERTAIN INDIVIDUALS [ A
Total Income (Rs) Tax payable Rebate u/s A Tax Payable
before cess (Rs) (Rs) Cess (Rs)

, , , ,

, , , ,

, , , ,

, , , , , ,
 Summary of Tax Rates for AY 0 0- 1
Status of Slabs (INR)
individual Nil 0 0

Resident / non- 0,000 – 00,000 – 1,000,000 and

0,000
resident 00,000 1,000,000 above

Resident – Senior
,00,000 – 00,000 – 1,000,000 and
Citizen ( 0 to ,00,000
00,000 1,000,000 above
years)

Resident – Very
00,000 – 1,000,000 and
Senior Citizen ( 0 00,000 -
1,000,000 above
years plus)

• Health and Education Cess @

• Surcharge @ 10 of tax where total income exceeds Rs. 0 lakh
• Surcharge @ 1 of income tax if income INR 1,00,00,000
• Rebate upto INR 1 , 00 available to residents having income INR 00,000
 Concept Of Income

A receipts are ta able nless specificall e empted a A

capital receipts are e empt nless specificall ta able.

I a a I a
()P a a

( ) Ca a a

( )D

( )W .

( )A a a .
Generall , Income from transfer of the re enue generating asset (i.e. the right
hich generates income) ill be capital receipt and income from the product
arises out of that asset ill be re enue receipt.
for Eg.

1. Income from ale of ha e ill be capi al income and

di idend income arises out of it ill be e en e income.

2. Income from an fe ( ale) of ho e p ope ill be capi al income and

en al income arises out of it ill be e en e income.

3. Income from an fe of machine ill be capi al income and ale of

p od c a i e o of machine ill be e en e income.

4. Compensation on oluntar retirement compensation is capital income and

salar income is re enue income.
A a a a a a
a ab a .A b a a a a b
b a
a a a a a
depends on the nat re of the receipt and scope read ith residential
stat s of person.

1. I a b a .

2. I a a a b a .

3. I .

4. C a (E I a
a a ).
 COMPUTATION OF TOTAL INCOME

A. Determination of Residential Status

B. Heads of Income
1.) Income from Salar XXX
2.) Income from House Propert XXX
3.) Income from Business/Profession XXX
4.) Income from Capital Gains XXX
5.) Income from Other Sources XXX
C. GROSS TOTAL INCOME (Sec. 14) XXX
Less:Deductions u/s chap-VI-A (Sec.80C to 80U) (XXX)
D. NET TOTAL INCOME [Sec.2(45)] XXX
E. Calculate Ta Due (As Per Slab rate gi en) XXX
Less: Rebates(sec.87A and Reliefs u/Chap-VIII (XXX)
F. Ta Pa able (Add Surcharge+ Cess on ta ) XXX
 E-FILING
The process of electronicall filing Income ta returns through the internet is
kno n as e-Filing.
Forms 1 to 8 are a ilable on . a a . .
E-filling proce
 Further Readings:
1. Students Guides to Income Tax - Vinod K. Singhania
. Income Tax – Theory, Law & Practice - T. N. Manoharan
S s ema ic Approach o Income Ta GST Girish Ah ja
Applicable for IPCC In er CA A Y
. Students Guides to Income Tax - Bangar

Online Resources
1. www.icai.org
. www.itatonline.org
. www.allindiataxes.com
. www.incometaxindia.gov.in
. www.incometaxindiaefiling.gov.in
Ma ginal Relief
M

M .I

.
Pa ic la Am n
A I
I 51,00,000

C
A. 2020-21

S l i n:
I 13,42,500
H &E C
(10% ) 1,34,250
I
H &E C R . 50 13,12,500

M
(51,00,000-50,00,000) L 70,000
(13,42,500-13,12,500)
 A :

I 13,42,500
+ 70,000 ( 70,000 1,34,250)
14,12,500
+H &E C 56,500
14,69,000
A ,

13,42,500
(*) (O 51 )

A : (@10%
1,34,250
- R . 13,42,500
( . .,
14,76,750
)

R . 50 (
13,12,500
)

A :I R . 50 1,00,000

14,12,500
Pa c a R .

14,12,500
( )

Add: Hea &E @ 4% 56,500

Ta ab 14,69,000
Pa ic la Am n
A I
I 1,02,00,000

C
A. 202-21
S l i n:
I 28,72,500
H &E C (
1,02,00,000)
(15% ) 4,30,875
Ta liabili af e S cha ge 33,03,375
 + @15% 102,00,000
33,03,375
+ @10% 100,00,000
30,93,750
I 2,09,625
I 2,00,000
Ma ginal Relief (9,625)
 32,93,750
A :H & EC @ 4% 1,31,750
Ta Liabili 34,25,500
 R .1 (
28,12,500
)

A : - @ 10% (
2,81,250
R .1 )
A :I R .1 2,00,000
32,93,750

N ( .e. ) R . 33,03,375

( ) R . 32,93,750
A (R .)
R.

(*) 32,93,750
Add: H & @ 4% 1,31,750
Ta ab 34,25,500
 P G B P
S 2(13): "b i e " i cl de a ade, c e ce a fac e
a ad e e c ce i he a e f ade, c e ce
a fac e;

S 2(29BA): " a fac e", i h i g a a ical a ia i , ea

a cha ge i a -li i g h ical bjec a icle hi g,
(a) e l i g i a f ai f he bjec a icle hi g
i a e a d di i c bjec a icle hi g ha i g a diffe e
a e, cha ac e a d e;
(b) b i gi g i e i e ce f a e a d di i c bjec
a icle hi g i h a diffe e che ical c ii i eg al
c e;

S 2(36): " fe i " i cl de ca i

 P G B P
S 28: The f ll i g i c e hall be cha geable i c e- a
de he head "P fi a d gai fb i e fe i ",
• he fi a d gai f a b i e fe i hich a
ca ied b he a e ee a a i e d i g he e i ea ;
• a c e ai he a e d e ecei ed b ,
(a) a e , b ha e e a e called, a agi g he h le
b a iall he h le f he affai f a I dia c a ,a i
c ec i i h he e i a i f hi a age e he
difica i f he e a d c di i ela i g he e ;
(b) a e , b ha e e a e called, a agi g he h le
b a iall he h le f he affai i I dia f a he c a ,a
i c ec i i h he e i a i f hi ffice he difica i
f he e a d c di i ela i g he e ;
(c) a e ,b ha e e a e called, h ldi g a age c i I dia
f a a f he ac i i ie ela i g he b i e f a he
e ,a i c ec i i h he e i a i f he age c he
difica i f he e a d c di i ela i g he e ;
(d) a e , f i c ec i i h he e i g i he
G e e , i a c ai ed c lled b he
G e e , de a la f he i e bei g i f ce, f he
a age e fa e b i e ;
• fi ale f a lice ce g a ed de he I (C l)
O de , 1955, ade de he I a dE (C l) Ac ,
1947 (18 f 1947) ;
• ca h a i a ce (b ha e e a e called) ecei ed ecei able
b a e agai e de a che e f he
G e e f I dia ;
• a d fc e ci e e- aid e- a able a d a back
a e agai e de he C a d Ce al E ci e
D ie D a back R le , 1971;
• a i e e , ala , b , c i i e eai , b
ha e e a e called, d e , ecei ed b , a a e f a fi
f ch fi ;
• a , he he ecei ed ecei able, i ca h ki d, de a
ag ee e f :
(a) ca i g a ac i i i ela i a b i e or
profession;
(b) ha i g a k -h , a e , c igh , ade- a k, lice ce,
f a chi e a he b i e c e cial igh f i ila a e
i f ai ech i e likel a i i he a fac e
ce i g f g d i i f e ice :
• a ecei ed de a Ke a i a ce lic i cl di g he
all ca ed b a f b ch lic .
P G B P

:
a. Recei a d Pa e
b. P fi a d L acc
 )R P :
All able b i e i c e
Le : all able b i e e e e
Ne a able i c e YY

)P L :
Ne fi a e P&L acc
Add: e e e di all ed ( ela ed b i e )
Add: B i e I c e b ec ded
XXX
Le : N b i e i c e ( )
Le : B i e e e e b ec ded ( )
P &G B P
S : 30 R , , &

• A e e di e i a e f e , a e , a e , e ai a d i a ce i
ela i b ildi g ed b a a e ee f he e f hi b i e
fe i hall be all ed a ded c i hile c i g i c e de
he head fi & gai f b i e fe i
• The ded c i hall be all ed f he e e e he he he a e ee i
he e he e a ( h ha de ake bea ch e ai he
e ie)
• C f e ai hall i cl de c e e ai l , ca i al e ai hall
be all ed be ded c ed.
• Ded c i i al all ed f e e e b a f la d e e e,
ici al a e a d i a ce i e ec f he e i e ed f he
e f he b i e fe i .
• If e i e a e a l ed b i e & a l f he e, l a
i a e a f he e e e a ib able b i e hall be
all ed a ded c i .
 S : 31 R & ,
&
• A e e di e i a e f e ai & i a ce f achi e , la &
f i e ed b a a e ee f he e f hi b i e fe i
hall be all ed a ded c i
• U e f he a e a be ac i e a i e (eg: a d-b achi e)
• Re ai i cl de e e al e ai b d e i cl de e lace e
ec ci f a a e , i.e. c f e ai hall i cl de c e
e ai l , ca i al e ai hall be all ed be ded c ed
• I a ce e i hall be all ed a a b i e e e di e if:
It is paid for the risk of damage/destruction of machiner , plant or furniture
The asset should be used for the purpose of business / profession during the ear
The premium should be actuall paid / pa able depending on the accounting s stem
followed.
• If a e a e a l ed b i e & a l f he e, l a
i ae a f he e e e a ib able b i e hall be
all ed a ded c i
 S 32 D
C -
• A e ee h ld be he e f he a e a d h ld be ed f
b i e e
B - ea a g f a e falli g i hi he a e cla
f a e a d a e a e f de ecia i
• Ta gible A e : B ildi g, F i e & fi i g , Machi e & la ,
Shi
• I a gible a e
T e f de ecia i :
• N al de ecia i :
• Addi i al de ecia i : @20% f he ac al c hall be all ed
i e ec f e la a d achi e ac i ed a d i alled af e
31/3/2005 b a a e ee e gaged i he: (i) a fac e
d ci f a icle hi g (ii) b i e f ge e a i ,
a i i di ib i f e.
 • U de ce ai i a i addi i al de ecia i @ 35% hall be all ed
a a e ee e i g a fac i g i i ified back a d a ea
f ecified a e .( efe e b k)
• E cl i : Addi i al De ecia i i all able i e ec f:
• Sec d Ha d Machi e , Machi e I alled i Office P e i e , R ad
a ehichle , a P&M h e e i e c i all ed a ded c i
he he i I dia O ide I dia.
Note:
• If a a e i e f le ha 180 da , he 50% f
he a licable a e f de ecia i ill be all ed.i.e 4h
Oc - F ll ea de
• De ecia i i all ed WDV ba i Bl ck f a e , b
elec ici c a ha he i f ll SLM (S aigh li e
e h d) f de ecia i .
• F ale f N - de eciable a e - Ca i al Gai f a (FVOC)
• F ale f De eciable a e - N al f a .(Bl ck f a e )
 D

Whe he al de ecia i i e ha a ailable fi , he e ce i

called ab bed de ecia i .
I ca be e ff fi i h he b i e i c e a d bala ce iha
he i c e f he ea a d
If he e i ill bala ce, i ca be ca ied f a d a d added i h e
ea de ecia i a d ea ed like de ecia i fc e ea
Business profits before depreciation
Le C en ea dep ecia ion X
Balance X
Le B fd B ine Lo X
Balance X
Le B fd nab o bed depn X
Balance X
 S 35 E
I - 100% f e e e a d ca i al e e di e ( he
ha c f la d) a d a e e di e i c ed d i g 3 ea
i edia el ecedi g he c e ce e f b i e [ ala
e l ee , cha e f a e ial ed i ch cie ific e ea ch, a
ca i al e e di e (e ce c f la d)]
150% i ca e f c a ie i ecified b i e (Weigh ed ded c i )-
i.e e gaged i Ma fac e d ci /Bi - ech ca i al a d
e e e (e ce c f la d)
C :
C P Q %
Re ea ch a cia i Scie ific e ea ch 150
I dia C a Scie ific e ea ch 100
Re ea ch a cia i S cial cie ce / a i ical e ea ch 100
Na i al lab a , Scie ific e ea ch de a 150
i e i , IIT a ga e a ed b he
ecified e e c ibed a h i
S : 35D A

• P eli i a e e e i c ed b I dia c a ie & he

e ide -c a e a e ee f he e abli h e fb i e
c ce f e a i f he b i e f e i i g c ce hall
be all ed a ded c i ba ed he ii f hi ec i .
• The a i a ha ca be all ed a eli i a
e e di e i fi ed:
I ca e f e ide -c a e a e ee: 5% f he c f he jec
I ca e f I dia c a : 5% f he c f he jec 5% f ca i al
e l ed, hiche e i highe
• The alif i g a f eli i a e e di e hall be all ed
a ded c i i fi e e al i all e e a e i d f fi e
cce i e ea begi i g i h he PY i hich he b i e
c e ce / he PY i hich he e e i f he de aki g i
c le ed / he e i c e ce d ci eai , a
he ca e a be.
S 36- .
M- CBI-CID
•I a ce e i c e i g i k f da age de ci f
ck / e life f ca le ed b a e be f c -
e a i e cie
• Medical i a ce e i aid b a de he ha ca h,
i e e l ee' heal h (i.e ca h a e all ed)
•B c i i aid e l ee
•I e e b ed ca i al
• Pro rata a f ic a e c b d ba ed
life
•C ib i ec g i ed ide f d a d a ed
e a a i f d/ g a i f d
•A aid b a e ee-e l e b a f C ib i
ad a e i che e he e e i d e e ceed 10
e ce f he e l ee' ala i he e i ea .
 S 37 G
Si ce i i i ac icable f he legi la e li all he ad i ible
e e e i c ai f a able b i e i c e, Sec 37(1) ha
bee e ac ed acc da e all ded c ible e e e he ha h e
ecificall c e ed b he i i .(Rela ed b i e a d
e e e i a e)
A e e di e:
• N bei g e e di e f he a e de c ibed i ec i 30 36
• N bei g i he a e f ca i al e e di e
• N bei g i he a e f e al e e di e f he a e ee
• Laid e e ded h ll & e cl i el f he e f he
b i e fe i
No e: e e di e i c ed f a e hich i a ffe ce
hibi ed b la hall be dee ed be laid e e ded
h ll & e cl i el f he e f he b i e
fe i (eg, bribe, hafta, penalt etc)
 E :S 40, 40A
• Pe al e e e a d Ca i al e e di e .
•E e e ela ed P&G head.
• Pa e f I dia i h TDS, Pa e i I dia
ih TDS & ch a ha bee ded c ed af e
ded c i ha bee aid bef e he d e da e f
fili g f e / 139(1) ( he e a licable).
• 30% f a a able a e ide hich a i
ded c ible a ce & ch a ha bee ded c ed
af e ded c i ha bee aid bef e he d e da e f
fili g f e / 139(1)
• Ta aid e i ie behalf f e l ee (i i a
e e e i i e f he e l ee b ded c i ca
be clai ed b he e l e i hi ega d)
.
• P i i , i cl di g ii f ga i
• Pa e f STT & F i ge be efi a , I c e a , Ad a ce
i c e a ,I e e .
•Sa a e be d d e da e , D a i
•E e e f b i e e, e e e e i ed
b la , ad e i e e i li ical e i , e ce i e
a e aid ela i e , ii f bad deb a
he ii

• E e e e ceedi g R . 10,000 aid i ca h (R . 35,000 i

ca e he a e i ade f l i g, hi i g lea i g g d
ca iage ). If ch a e e di e a all ed d e ba i , i
hall be c ide ed i c e f he a e ee i he ea i
hich ca h a e i ade.
 E C
Pa e i ca h e ceedi g R .10,000 i all ed i f ll i g ca e :
1. a e i ade (i) RBI , BANKS, LIC
2. a e i ade he G e e f legal e de
3. a e i ade b a de h gh a ba k
4. Pa e i ade b a f adj e agai he a fa
liabili i c ed b he a ee f a g d lied e ice
e de ed b he a e ee ch a ee;
5. Pa e i ade he c l i a , g e d ce f he
cha e
f
(i) ag ic l al f e d ce;
(ii) he d ce f a i al h ba d
(iii) fi h fi h d c ;
(iv) he d c f h ic l e a ic l e,(beekee i g)
6. a e i ade f he cha e f he d c a fac ed
ce ed i h he aid f e i ac age i d , he
d ce f ch d c ;

7. a e i ade i a illage , hich he da e f ch

a e i e ed b a ba k

8. Pa e i ade a e l ee f he a e ee fa il
g a i , e e ch e c e ai i ila e i al be efi <
50,000

9. Pa e a e i ed be ade a da hich he ba k
e e cl ed

10. Pa e i ade b a a h i ed deale a e cha ge

agai cha e f f eig c e c a elle che e i he
al c e f hi b i e .
 S .43B- D
• S 43B ( )
– Ta , d , ce fee de a la (i di ec a e )
– b c i i e l ee
– i ee l a f a blic fi a cial i i i a ae
fi a cial c ai a aei d ial i e e c ai
– i ee a l a ad a ce f a ched led ba k
– d e e l ee i lie f lea e bala ce
– c ib i a able b a e l e a
ide / e a a i /g a i /e l ee elfa e f d.
The ab e i e ill be all ed a ded c i l if a e i ade
d i g he ele a PY
OR
a e i ade bef e he d e da e f fili g e fi c e /
139(1).i.e f i i id al 31 J l f AY
 P I

Ag ic a E e N ag ic a Ta ab e
Pa ic a fb i e
i i

Growing Manufacturing
of Tea
Growing Manufacturing
of R bbe
Growing Manufacturing
of C ffee

Growing Manufacturing
of c ffee g c ed
a ed and grounded
• E.g. :- M . Shah i a ag ic l i . He i ha i g ag ic l al la d i
Nilgi i he e he g a d a fac e ea. D i g he fi a cial ea
2019-20, he d ced ea a i g R . 12 c e . H ch ill be
he a able e f F.Y. 2019-20?
• A . :- I c e- a Ac ha ided ha 60% hall be e e f a
f al a fac i g f ea i I dia. He ce, f R . 12 c e ,
ag ic l al i i R . 7.20 c e . A d a able e fM.R i
R . 4.80 c e de B i e a d P fe i f fi a cial ea 2019-20.
Se ion Income f om o he o ce
This is the last head of Income.

It is a residuary head and covers those incomes which are not covered
under other heads.
Examples of such incomes are: Income from sub-letting, Dividend, Income
from machinery, plant, etc given on hire, Interest income, Paper setting
fees received by a lecturer, Director’s fees, for attending board meetings
or committee meetings, Royalty received by an author, Winnings from
lotteries, crossword, horse races, card games and betting.

No e an e en e inc ed o ea n he abo e income ill be allo ed o

be ded c ed Onl he ne income o ld be a able income e ce in
ca e of inning fo lo e ie ho e ace e c
 Income No Ta able E em
Interest on statutory provident fund and P.P.F.
Interest on R.P.F. up to . is exempt (excess is taxable )
Interest on post office saving A/c and Interest on post office cash
certificate
Interest on National plan certificate is exempt
Interest on capital investment bond is exempt
Interest on central government bond is exempt
Interest on . or or RBI bonds is exempt
Indian railways tax free bonds interest or income is exempt
Any award received from the state or central govt. is exempt
Allowances received from MP/MLA of parliament
Income from mutual funds
Income Received from HUF
Dividend from Indian companies, UTI or any recognized Mutual fund
Amount received on maturity of LIC policy including bonus
Pension to family member of gallantry award winners, vir chakra, etc
 TAXABLE INCOME UNDER THIS HEAD

Interest on savings bank a/c with any bank

Salary received by member of parliament /MLA
Income received from letting out of vacant plot of land
Income from sub-letting
Dividend from foreign companies and Indian co-operative societies.
Interest on bank deposit or bank interest
Interest on NSC VIII, NDS, KVP, NSS ( )
Interest on fixed deposit or public deposit with Company
Interest on Debentures or shares of cooperative society
Interest on post office ,time ,monthly& recurring deposits
Interest received from financial institutions
Agricultural income outside India is taxable but in India is exempt
Royalty received by an author is IFOS, Winning from lotteries is IFOS,
crossword, puzzles, card gain, betting, gambling, horse race & other
races
Family pension received by family member (exempt lower of / rd of
pension or )
Interest on Debentures
Directors board meeting fees, etc.
In e e on Com en a ion f om Com l o
Ac i i ion
Interest on late receipt of compensation is
taxable under the head “Income from other
sources”. [u/s ( )(viii)] on receipt basis
However, of this interest shall be
e em ed [u/s (iv)]
Such interest would be taxable in the year of
receipt.
 Gifts/Receipts without Consideration
Taxable:
(a) Money, moveable or immovable property received by an Individual without
consideration in any PY from any person on or after . . are taxable u/s
( )(vi) under the head, ‘Income from Other Sources’
(b) When a sum of money is received without consideration, the aggregate value
of which exceeds Rs. , , the whole of the aggregate value of such property is
taxed
(c) When any immovable property is received without consideration, the stamp
duty value of which exceeds , , the whole of the aggregate value of such
property is taxed
(d) When any movable property is received without consideration, the aggregate
FMV of which exceeds , , the whole of the aggregate FMV is taxed
EXCEPTIONS
Thi cla e hall no a l o an mo o e ecei ed
a f om an ela i e o
ela i e mean S o e B o he Si e of elf and o e o e of
b o he i e an lineal a cenden o de enden of elf o e
b on occa ion of he ma iage of he Indi id al o
c nde a ill o b a of inhe i ance o
d f om an egi e ed nde ec ion AA
 Example
From the following information, compute IFOS of Mr. Dilip:
. Income from Agricultural land in India
. Income from Agricultural land in Nepal
. Mr. Dilip is a tenant of Mr. Sunil in respect of a bungalow in Goa.
Mr. Dilip has in turn rented the bungalow to Kapil for a rent of
Rs. pm. Dilip pays rent of Rs. pm to Mr. Sunil.
. Interest earned: (a) Interest on deposits with banks Rs. , (b)
Interest on PPF –Rs. , (c) Interest on Government Securities
(net , TDS- )
. Lottery prize – net , tds . He had purchased lottery
tickets worth Rs. .
. He received a refund from the Income tax department pertaining
to the AY - of Rs. along with interest Rs. .
 Solution: IFOS
Particulars Rs. Rs.
Income from Agricultural Land in India
Less: Exempt
Income from Agricultural Land in Nepal
Rent from Subletting from Kapil
*
Less: rent paid *
Interest on:
Bank deposits
PPF (exempt u/s ( )
Govt Securities - Gross -
Lottery prize-gross-
Interest on Income tax REFUND
To al IFOS
Income Tax on winnings from Lottery,
Game Shows, Puzzle- Casual Income
If you receive money from winning the lottery,
Online/TV game shows etc., it will be taxable under the
head Income from other Sources. The income will be
taxable at he fla a e of which after adding cess
will amount to . .Incomes from following sources
come under this category:
Lottery
Game Show or any entertainment program on
television or electronic mode
Crossword Puzzle
Gambling or betting
Races including Horse races.
Note No deduction under Chapter VIA is allowed from such
income. The Benefi of ba ic e em ion limi and income a
lab a e i al o no a licable to this income. The entire
amount received will be taxable at the flat rate of
Surcharge if any) Cess @ .
For instance, Sahil has on the pri e mone of Rs 3
lakhs from a game sho and he has an interest income
of Rs 5 lakhs p.a.Then the ta liabilit ould be
calculated as per follo ing:
Ta on Rs 3 lakhs @ 30%
Ta on Rs 5 lakhs as per income ta slab rates after
claiming the rele ant deductions
Questions:

1. Mr. XYZ (aged 35 years) submits the following particulars pertaining to the A.Y. 2020-
21:
Pa a `

I c e aa (c ed) 4,00,000

L e - cc ed e (-) 70,000

L e- e (-) 1,50,000

B e (-)1,00,000

Ba e e (FD) ece ed 80,000

Compute the total income of Mr. XYZ for the A.Y. 2020-21.

S :

P A A
(`) (`)
Income from salary 4,00,000
Le : Loss from house property of ` 2,20,000 to be restricted
to ` 2 lakhs by virtue of section 71(3A) (-) 2,00,000 2,00,000
B ` 20,000

Income from other sources (interest on fixed deposit with 80,000

bank)
Business loss set-off (-) 1,00,000 -
Business loss of ` 20,000 to be carried forward for set-off
against business income of the next assessment year
G [S N
Le : Deduction under Chapter VI-A 2,00,000
Nil
T
2,00,000

N :G T I 2,00,000
2,00,000 .T 20,000
 -
.

B 1,00,000 80,000
20,000 .

Q.2

Compute the gross total income of Mr. ABC for the A.Y. 2020-21 from the information given
below –

Pa a `
I c e e e (c ed) 1,25,000
I c e b e (be e d de ec a ) 1,35,000
S e ca a a ae ed a e 56,000
L e ca a ae e (b ad (90,000)
A.Y. 2019-20)
I c e ea b e 1,20,000
D de d I da c a e ca a c a ea 80,000
C e ea de ec a 26,000
B a db e ( c ed ea a ) (45,000)
S :

P
Income from house property (Computed) 1,25,000
I
Profits before depreciation 1,35,000
Le : Current year depreciation 26,000
Le : Brought forward business loss 45,000
64,000
Income from tea business (40% is business income) 48,000 1,12,000
C
Short term capital gains 56,000
G T I 2,93,000

Note:
(1) Dividend from Indian companies is exempt from tax under section 10(34) to the extent of
` 10 lakh.

(2) 60% of the income from tea business is treated as agricultural income and therefore,
exempt from tax;

(3) Long-term capital loss can be set-off only against long-term capital gains. Therefore,
long-term capital loss of ` 90,000 brought forward from A.Y. 2019-20 cannot be set-off in the
A.Y. 2020-21, since there is no long-term capital gains in that year. It has to be carried forward
for set-off against long-term capital gains, if any, during A.Y. 2021-22.

Q.3

M .G a, a a, a /
a 31.3.2020:

(i) Sa a a a a a a ` 7,50,000. T a a a
.

(ii) L a a BSE ` 3,00,000. S a 15 a

STT a a a a .

(iii) L - a a a a a ` 5,00,000.

(i ) ` 51,000 a a .

( ) ` 55,000, a a a .

( i) B a a a 2018-19 ` 12,50,000.

C a M .G a A Y a 2020-21 a a a
a a a a a .

S :

P
P
Salary received as a partner from a partnership firm is taxable under the head 7,50,000
“Profits and gains of business and profession”
Le : Brought forward business loss of Assessment Year 2018-19 to be set-off
against business income 7,50,000
Nil
C G

Long term capital gain on sale of land 5,00,000

 Less: Long-term capital loss on shares on STT paid (See Note 2) 3,00,000 2,00,000

I
Cash gift received from friends - since the value of cash gift 51,000
exceeds ` 50,000, the entire sum is taxable
Dividend received from a domestic company is exempt under
section 10(34)
Nil 51,000

Gross Total Income 2,51,000

N :

1. B 2018-19

5,00,000 .

2. L - STT
- - -
(STT ) 112A. T ,
- - 70(3).

Q.4

Mr. P, a resident individual, furnishes the following particulars of his income and other details
for the previous year 2020-21:

S.N . Pa a `

() I c e aa (c ed) 18,000

( ) Ne a a a e e e 70,000

( ) I c e b e 80,000

( ) I c e ec a eb e 12,000

( ) L e ca a a ae a d 15,800

( ) L a e a ce ace e 9,000

( ) L a b 8,000
D I - A , 1961, 8,000,
.

T (
A.Y. 2019-20) :

S. Pa a `

N .

() U a a 9,000

( ) L a 16,000

( ) S a a 7,800

C a M .P A a 2020-21, a a
a a a a a .

S :

P
() I 18,000
( ) I H P
Net Annual Value 70,000
Le : Deduction under section 24 (30% of 21,000 49,000
` 70,000)
( ) I
(a) Income from business 80,000
Le : Current year depreciation 8,000
72,000
Le : Unabsorbed depreciation 9,000 63,000
(b) Income from speculative business 12,000
Le : Brought forward loss from speculative business 12,000 Nil

(Balance loss of ` 4,000 (i.e. ` 16,000 – ` 12,000) can be

carried forward to the next year)
( ) I
Long-term capital gain on sale of land 15,800
Le : Brought forward short-term capital loss 7,800 8,000
G 1,38,000
A

L ( 73) 4,000

L ( 74A) 9,000

P
Loss from speculative business (to be carried forward as per section 73) 4,000
Loss on maintenance of race horses (to be carried forward as per section 74A) 9,000

N :

() L -

( )A 74A(3),
-
.S 4
.

( )S

A.Y. 2021-22. I
73(4).
 Residen ial s a s /s 6

• Ta liabili is based on he residen ial s a s of a

person.

• Citizenship is NOT he main cri eria for a p rposes

and is differen from residen ial s a s

• Residen ial s a s ma change from ear o ear

depending pon he s a in India.
 Kinds of Residen ial s a s

All
R& A e ee
OR(ROR)-
Re de &
O d a
Non-
Re de Re iden
e iden
RNOR-
Re de b
O d a
Indi id al
Re de

R b no
R & OR
OR
 C
BA IC 6(1) ADDI IONAL 6(6)

S a in India for Residen in India S a in India

S a in India 60* da s or for a leas 2 o for 730 da s
for 182 da s or more d ring he of 10 ears or more
more d ring OR PY immedia el d ring 7
PY & immedia el
& preceding he PYs
preceding
S a in India for PYs
365 da s or
Re de
more in 4 Re de &
preceding PYs
* e cep ions:
O d a Re de
a) A ci i en of India lea ing India for he p rpose of emplo men or as a member of
he cre of an Indian ship.
b) A ci i en of India or a person of Indian origin ho is residing o side India &
comes o India on a isi d ring an PY
HO TO CHECK 4/10/7 P

• C P = 2019-20, (
P ) .
• 2018-19 2011-12
• 2017-18 4 2010-11
• 2016-17 7 ea 2009-10
• 2015-16
• 2014-15
• 2013-14
• 2012-13
E 2 6(1)
In he case of an indi id al, ho is a ci i en of India & a member of
he cre of a foreign bo nd ship lea ing India, he period(s) of s a for
s ch o age in India shall no incl de he period beginning on he da e
en ered in o he Con in o s Discharge Cer ifica e (CDC) in respec of
joining he ship b he said indi id al for he eligible o age & shall
end on he da e en ered in o he CDC in respec of signing off b ha
indi id al from he ship in respec of s ch o age

Eligible Voyage means a o age nder aken b a ship in in erna ional

raffic here:
a) For he o age hich origina ed from an por in India & has i s
des ina ion an por o side India
b) For he o age ha ing origina ed from an por o side India & has
i s des ina ion an por in India
A
A person shall be deemed o be of Indian origin if he or ei her of his
paren s or an of his grand-paren s, ere born in ndi ided India.

In case here an emplo ee is assigned o en i ies o side India & he

s a s in India for less han 182 da s d ring he PY, he co ld ob ain he
s a s of a NR
 C H F 6(2)

A HUF is said o be residen in ADDI IONAL ( K )

India if he &
of i s affairs is
si a ed in Residen in S a in India
India. India for a for 730 da s or
leas 2 o of more d ring 7
& immedia el
10 ears
immedia el preceding PYs
preceding
he PYs
 R 6(3)

A compan is said o be residen in India, if in an PY:

i. I is an I ; or
ii. In case of o her companies, here i s place of effec i e
managemen (POEM) in ha ear, is in India.

In an o her case, he compan shall be considered as NR

POEM means a place where the ke a age e & c e cial

deci i that are necessary for conduct of business of an entity as a
whole are, in substance made.
 F , AOP & - 6(2) & 6(4)

A firm, AOP & e er o her person is considered as residen if he

and is si a ed or in India.
If he con rol and managemen is si a ed holl o side India, s ch
firm, AOP & e er o her person is considered as NR.
 I 5

P ROR RNOR NR

Income recei ed or deemed o be recei ed in India T T T

Income accr ing or arising or deemed o accr e or T T T

arise in India
Income accr ing or arising o side India T NT* NT

* In he case of RNOR indi id als & HUFs, income accr ing or arising
o side India shall be a able in India if i is from a b siness con rolled in
India or a profession se p in India.
 I 7

The follo ing income shall be deemed o be recei ed in he pre io s ear:

1. Emplo er s con rib ion o RPF in e cess of 12% of salar

2. In eres credi ed o he RPF balance in e cess of 9.5% pa

3. The ransferred balance from URPF o RPF (being he emplo er s

con rib ion & in eres hereon)

4. The con rib ion made b an emplo er in he pre io s ear o he

acco n of an emplo ee nder a pension scheme referred o in Sec
80CCD.
 I I 9
Sec I c e

9(1)( ) A I
A I
A I ;

A I
9(1)( ) A , I
9(1)( ) A G I
I
9(1)( ) D I I
9(1)( ) I G , -
9(1)( ) R G , -
9(1)( ) F G , -
B i e c ec i is defined o incl de b siness ac i i carried o b a
non-residen in India hro gh an agen . The agen performs an of he hree
follo ing f nc ions:

1. He has & habi all e ercises in India an a hori o concl de

con rac s; or

2. He habi all main ains a s ock of goods or merchandise in India &

from hich he reg larl deli ers goods or merchandise; or

3. He habi all sec res orders in India mainl or holl for he non-
residen or ario s non-residen s ho are s bjec o he same common
con rol
 I I
1 9(1)( )
In case of non-residen s, he follo ing shall no be considered as b siness
connec ion in India & herefore, no income shall be deemed o accr e or
arise in India:
1. Transac ions ha are confined o mere p rchase of goods in India for
;
2. Opera ions confined o & in India for
o of India b or on behalf of non-residen , ho is
engaged in he b siness of r nning ne s agenc or of p blishing
ne spaper or maga ine or jo rnals;
3. Opera ions confined o he film in India,
here s ch non-residen is:
a) An indi id al ho is no a ci i en of India; or
b) A firm no ha ing an par ner ho is a ci i en of India or ho is
residen in India; or
c) A compan no ha ing an shareholder ho is a ci i en of India
or ho is residen in India.
 I ,R &F 9(1)( ),
9(1)( ) 9(1)( )
N I P
Go ernmen Residen Non-Residen
In eres on monies Deemed o Deemed o accr e or Deemed o accr e or arise
borro ed accr e or arise in arise in India e cep in India onl hen sed
India hen sed for a b siness for he p rposes of
or profession carried on b siness or profession
o side India or for an carried on in India.
so rce of income o side
India.
Ro al in respec Same as abo e Same as abo e Deemed o accr e or arise
of an righ s or in India hen sed for he
proper or p rpose of b siness or
informa ion sed profession carried on in
or ser ices ilised India or for an so rce of
income in India.
Fees for echnical Same as abo e Same as abo e Same as abo e
ser ices
I ee , al & fee f ech ical e ice a e a able e e if he e i
b i e c ec i i I dia.
 Ill s ra ion 1:
N A (R .) ROR RNOR NR

Profi s from a b siness in Chennai managed from 40,000

German
Pension for ser ices rendered in India b recei ed 15,000
in Sri Lanka
In eres on US Go ernmen bonds half of hich is 8,000
recei ed in India
Income from proper si a ed in Pakis an recei ed 20,000
here
Pas foreign n a ed income bro gh o India d ring 7,000
he pre io s ear
Income from agric l ral land in Bh an recei ed 30,000
here and hen bro gh o India
Income from profession in Ken a hich as se p 12,000
in India, recei ed here
 Sol ion
N A ROR RNOR NR
(R .)

Profi s from a b siness in Chennai managed from 40,000 T T T

German
Pension for ser ices rendered in India b recei ed in 15,000 T T T
Sri Lanka
In eres on US Go ernmen bonds half of hich is 8,000 T (F) T(P) T(P)
recei ed in India
Income from proper si a ed in Pakis an recei ed 20,000 T - -
here
Pas foreign n a ed income bro gh o India d ring 7,000 - - -
he pre io s ear
Income from agric l ral land in Bh an recei ed 30,000 T - -
here and hen bro gh o India
Income from profession in Ken a hich as se p 12,000 T T -
in India, recei ed here
Mr. Tom, a Bri ish ci i en had he follo ing income d ring he ear ended on
31s March

1. Income from ho se proper in India 15000

2. Income from proper in Rome recei ed here 10000
3. In eres from bank acco n in India 1200
4. Income from b siness in Bangladesh, being con rolled from
India 16000
5. In eres on Bank acco n in USA 11000
6. Salar earned and recei ed in Tok o 12000
7. Income earned and recei ed in London 13000
8. Di idend from Bri ish compan recei ed in India 17000

Comp e his o al income for rele an AY in 3 differen cases:

A) ROR, b) RNOR and C) NR.
 Sol ion

N A ROR RNOR NR
(R .)
Income from ho se proper in India 15000 T T T
Income from proper in Rome recei ed here 10,000 T - -
In eres from bank acco n in India 1,200 T T T
Income from b siness in Bangladesh, being 16,000 T T -
con rolled from India
In eres on Bank acco n in USA 11,000 T - -
Salar earned and recei ed in Tok o 12,000 T - -
Income earned and recei ed in London 13,000 T - -
Di idend from Bri ish compan recei ed in India 17,000 T T T
 A I 2(1A)

Sec 2(1A) defines agric l ral income o mean

a) An ren or re en e deri ed from land, hich is I & is

sed for ;
b) An income deri ed from s ch land b agric l re or b he process
emplo ed o render he prod ce fi for he marke or b sale of s ch
prod ce b a c l i a or or recei er of ren in kind;
c) An income deri ed from farm b ilding, pro ided he follo ing
condi ions are sa isfied:
i. The b ilding is on or in he of he agric l ral
land;
ii. I is b he or of ren or re en e;
iii. I is sed as a d elling ho se or s ore-ho se or o -ho se; and
i . The land is assessed o land re en e in India or i is no si a ed
i hin he specified area
 A I 2(1A)

Specified area means

a) An area hich is comprised i hin he j risdic ion of a m nicipali or
a can onmen board and hich has a pop la ion of no less han 10,000;
or
b) An area i hin he dis ance specified here nder meas red aeriall
from he limi s of s ch m nicipali or can onmen board:

P D

More han 10,000 p o 1 lakh 2 kms

More han 1 lakhs p o 10 lakhs 6 kms
More han 10 lakhs 8 kms
 P I A

P A
Agric l ral income (a) XX
Non-agric l ral income (b) XX
Aggrega e of a & b ( o al income) (c) XX
Ta pa able on (c) (d) XX
Aggrega e of (a) & basic e emp ion limi (e) XX
Ta pa able on (e) (f) XX
Ne a pa able (d) (f) (g) XX
The o al non-agric l ral income of Mr. Vick , aged 55 ears is Rs. 4,00,000.
he agric l ral income earned is Rs. 70,000. De ermine he a pa able b Mr.
Vick for he ear
P A (R .)
Agric l ral income (a) 70,000
Non-agric l ral income (b) 4,00,000
Aggrega e of a & b ( o al income) (c) 4,70,000
Ta pa able on (c) (d) 11,000
Aggrega e of (a) & basic e emp ion limi (70k + 250K) 3,20,000
(e)
Ta pa able on (e) (f) 3500
Ne a pa able (d) (f) (g) 7500
Less: Reba e /s 87A 7500
Ta liabili 0
Add: Heal h and ed ca ion cess @ 4% 0

Ne a liabili 0
Table Showing Set Off And Carry Forward Of Losses
Whether Losses Time limit
Whether loss can can be carried for carry
Head of income under
be set off within forward and set forward
which Loss is incurred
the same year off in subsequent and set off
years. of losses
Under Under Under Under
the any the any
same other same other
head Head head Head
1. I S NA NA NA NA NA
2. I H
Y Y Y N 8
P #
3. P
B P :
.N -
Y Y Y N 8
B
.S B Y N Y N 4
.U Y
Y Y Y I
D
.U I
D Y Y Y Y 8
.
Y ,

4. C L (S -T ) N Y N 8
LTCG &
STCG
Y ,
5. C L (L -T ) N Y N 8
LT
6. I O
S :
.L ,C ,
P ,C G ,
N N N N NA
G ,
.
.L
Y N Y N 4Y
R H
.O I Y Y N N NIL
 L f HP ca be e ff agai i c e de a head he e e fR
akh i he ea f The e ai i g ca be ca ied f a di he cceedi g ea
 TDS RATE CHART FOR THE FY-2019-2020
(AY: 2020-2021)
TDS rate for

Other than If PAN is not

Individual Individual/ submitted/
Nature of Payment Basic Cut-off
Sl. No. Section and HUF
(Rs.) p.a. HUF Invalid PAN

Payment of Salaries by 192 Slab rate Slab rate Not applicable 30%
1 Employers

Premature payment by PF
Organization from EPF A/c 192A 50,000.00 10% Not applicable 20%
2 (i.e. before 5 Years).

Payment of Interest on
3 Securities by company. 193 10,000.00 10% 10% 20%

Payment of Dividend other

than dividend as referred to
Section 115O by company
(i.e. Dividend on which
Dividend Distribution Tax is
4 not 194 2,500.00 10% 10% 20%
paid)

40,000.00
(Non Sr.Citizen)
50,000.00
Payment of Interest by
5 bank 194A (Sr. Citizen) 10% 10% 20%
Payment of Interest by
6 others 194A 5,000.00 10% 10% 20%

Payment of prize from

Wining from Lotteries by
7 194B 10,000.00 30% 30% 30%
any person.
Payment of prize from
Wining from Horse Race by
8 194B 10,000.00 30% 30% 30%
any person.

30,000.00
(Single bill) or
Payment to Contractors by 1 Lakh
9 any person. 194C aggregate 1% 2% 20%
bills
during the year.

Payment to Transporter
Covered u/s. 44E and
submit declaration in
prescribed format. (i.e.
10 owning less than 10 194C - 0 0 20%
goods carriages)
 TDS RATE CHART FOR THE FY-2019-2020
(AY: 2020-2021)

Payment to Transporter not 30,000.00

covered u/s. 44E (Single bill ) or
11 194C 75,000.00 1% 2% 20%
(i.e. owning more than 10 aggregate
goods carriages) bills during the
year.
Payment of Insurance
Commission to agents by
12 Insurance Company. 194D 15,000.00 5% 10% 20%

Payment in respect of
maturity of Life Insurance
Policy by Life
13 Insurance Company. 194DA 1 Lakh 1% 1% 20%

Payment to NRI sportsman

or association by any person
or
14 194E - 20% 20% 20%
organization

Payment out of deposit under

National Saving
15 Scheme (NSS) 194EE 2,500.00 10% 10% 20%

Payment with respect to

repurchase of units by
16 Mutual Fund Companies. 194F - 20% 20% 20%

Payment of Lottery
17 Commission 194G 15,000.00 5% 5% 20%

Payment of commission or
18 Brokerage 194H 15,000.00 5% 5% 20%

Payment of rent on land,

building, furniture and
19 fittings. 194I 240,000.00 10% 10% 20%

Payment of rent on plant,

20 machinery or equipments. 194I 240,000.00 2% 2% 20%

Payment made on account of

transfer of immovable
property other
21 than agriculture land. 194IA 50 Lakh 1% 1% 20%
 TDS RATE CHART FOR THE FY-2019-2020
(AY: 2020-2021)

Rent payable by
individual not covered
u/s. 194I for land,
22 building, furniture and 194IB 50,000.00 PM 5% 5% 20%
fittings

Payment of Professional
Fees other than call
23 centers 194J 30,000.00 10% 10% 20%

Payment of Professional
24 Fees to call centers. 194J 30,000.00 2% 2% 20%

Compensation on transfer of
certain immoveable property
than Agriculture
25 194LA 250,000.00 10% 10% 20%
Land